Reducing or eliminating the tax on Social Security may be the easy one. With tips, it becomes income that isn’t reported to the IRS. I am not sure how they would implement no tax on OT.
No tax on OT would be fairly simple, except that employers would need a software update (for the most part). Shouldn’t be too hard to patch.
Simple solution is to ban the cutout for tipped employees to be paid well under minimum wage.
My guess is that tips would be handled like non-taxable combat pay which is not included in taxable income but including it for child tax credit and earned income credit is optional.
MANY states require a % of the bi.ll to be reported as TIPS...WHETHER tips happened or not. NOT fair to employee.
When on a Cred card-—easy to track.