A good analysis of the restaurant industry, but there are many other types of workers who make the bulk of their earnings in tips. And I think your analysis would not translate well to some of those industries. Many strippers, for example, make the vast majority of their income from tips. (And many strippers, on an hourly basis, are very high earners). Should our federal tax policy effectively allow strippers to earn their income tax-free while teachers, cops, and firefighters have to pay taxes on their income? Same goes for bartenders, camgirls, OnlyFans models, video game streamers, etc. etc. Seems to be both bad policy and bad politics.
A good analysis of the restaurant industry, but there are many other types of workers who make the bulk of their earnings in tips. And I think your analysis would not translate well to some of those industries. Many strippers, for example, make the vast majority of their income from tips. (And many strippers, on an hourly basis, are very high earners). Should our federal tax policy effectively allow strippers to earn their income tax-free while teachers, cops, and firefighters have to pay taxes on their income? Same goes for bartenders, camgirls, OnlyFans models, video game streamers, etc. etc. Seems to be both bad policy and bad politics.