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Trump Tax-Free-Tip Plan Opens ‘the Door to Tax Evasion,’ Expert Says – Business Insider

Trump Tax-Free-Tip Plan Opens ‘the Door to Tax Evasion,’ Expert Says – Business Insider

Under a tax-free-tip system, employees who work for tips — such as waiters, bartenders, drivers, and some hotel staff — would have a financial advantage over other low-wage workers, such as those who work in fast food, because they could avoid taxes for Social Security, Medicare, and income.

It could also mean consumers — many already experiencing tipping fatigue as tipping culture pervades more industries — would be asked to tip in additional situations so workers could receive untaxed income.