Short Changed : Ending Income Taxes On Tips Will Not Make Subminimum Wages Livable

In the midst of a post-pandemic affordability crisis, the minimum wage in general and the subminimum wage for tipped workers in particular — and campaigns to end it — havebeen gaining attention in recent months. So much so, that the Republican nominee for president of the United States has proposed ending income taxes on tips as a way to increase service workers’ incomes. In response, U.S. Senator Ted Cruz drafted the ‘No Tax on Tips Act’ which would end income taxes on tipped income, but would not end payroll taxes on tips.

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