While campaigning for president, both former President Donald Trump and Vice President Kamala Harris say they will eliminate taxes on tips if elected. Trump, who made the campaign promise first, hasn’t released details about his plan, but he did suggest that it would eliminate federal income tax and payroll tax, including Social Security. Harris said her plan would only include tipped workers under a certain income, would include raising the minimum wage for other workers and would be limited to service and hospitality workers. There has been some criticism that eliminating tax on all tips could make hedge fund managers, lawyers and others change their compensation to include tax-free tips.
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