No tax on tips is pandering stupidity. How is that not discriminatory to earners with low income that do no have tips as part of their jobs? This is Trump making policy because something sounded good to say at a rally.
Politically maybe it helps him with younger voters, but I do hope they are not serious about this.
Most all tipped people are not paid minimum wage and usually don't get benefits. They have ambition with people/server skills (or they don't last long). Minimum wage jobs are off the street, no skills, warm body given necessary training and possibly benefits to do entry level jobs.
The minimum wage for servers in Maine is $6.08 per hour, with the expectation that tips received will make up the difference between this lower wage and the overall minimum wage.
Yes, at face value it seems Trump is pandering, but digging deeper is he actually correcting a wrong? IDK, these people are usually on the low end of the income scale and will make good use of the few extra bucks the IRS would normally take from them. Inflation is reducing restaurant traffic, reducing restaurants, reducing tips and staff while making it harder for the servers to afford their own basic expenses. This small change could help them survive.
It is not uncommon for servers to make more than the cooks/dishwashers. So fuck them right? I'm sure they'd like to have a large percent of their income suddenly become untaxable.
If you want to help low income people then reduce the rate for the entire bracket. Don't decide that only one part of the service industry gets a break. Fuck retail, fuck supermarket workers, fuck gas station attendants. I just don't like it, it is arbitrary and unfair.
The dishwasher and cooks are paid minimum wage or more, not server minimum wage. Why should they get tips?
Everyone you mentioned is making $10/hr or more than the servers are being paid.
Arguments could be made for other employee groups as you have made. An across the board tax change to make the first $35k income tax exempt could cover them all. Why $35K? I used $16x40x52 and rounded up a bit. Maybe that comes later for all if Trump is elected and he hobbles the IRS. IDK. Big changes are coming. Trump has hinted at using tariffs to fund the government while eliminating the federal income tax.
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