If tips aren’t taxed, what about bonuses? They are like tips.
No similarity, bonuses come from your employer. Tips come directly from your customer.
Same rational should be extended to overtime.
People work 40+ hours of overtime, and they should see 100% of that money. It should be exempt from ALL tax, federal, state and local.
Tips and bonuses are presently taxable because they are payment for work well done. Neither are gifts because, according to a court case whose name I have forgotten forty years after law school, the money is not given with “detached and disinterested generosity.” You only give tips to those who have served you. Now, if you go into a restaurant, for example, and give every server $100, those would be gifts and not income. But that is not how it works. Trump’s proposal not to tax that income, is politically brilliant.