One thing I'm not seeing here that I wonder if a no tax on tips would facilitate is hiring undocumented workers. If a business doesn't pay someone, and their wage is 100% tips, couldn't that make it easier to employ undocumented workers? This is best handled as a local policy (state at the biggest). If this rolls out nationally, I look forward to negotiating my bonu.. ahem, yearly tip from my employer.
One thing I'm not seeing here that I wonder if a no tax on tips would facilitate is hiring undocumented workers. If a business doesn't pay someone, and their wage is 100% tips, couldn't that make it easier to employ undocumented workers? This is best handled as a local policy (state at the biggest). If this rolls out nationally, I look forward to negotiating my bonu.. ahem, yearly tip from my employer.