The promise to eliminate taxes on tips has been a key part of Donald Trump’s economic campaign. Cindy Kramer, who works four jobs in Staten Island, supports this initiative, as it could ease her financial stress. However, experts argue that the impact of such a policy would be limited since many tipped workers don’t earn enough to pay federal income taxes.
Trump’s promise to eliminate federal income and payroll taxes on tips has raised questions about how it will work. The reality is that only a small proportion of tipped workers would benefit, as many don’t meet the income threshold to pay federal taxes. Additionally, the removal of payroll taxes could impact Social Security and Medicare funding, making the proposal more complex.
