Vice President Kamala Harris and former President Donald Trump have both proposed axing taxes on tips as they ramp up their presidential bids. But, even if the idea sounds appealing in theory, tax experts say a policy making tips tax-free wouldn't be all that helpful to workers in tipped occupations in practice.
Neither of the two major-party candidates have detailed their visions for the tax-free tip proposals, which would first have to be approved by Congress. Their suggestions have also raised questions around whether and to what extent guardrails against fraud and abuse would be implemented and how much tipped income would go untaxed, according to CNN.
