[Seaplaner]

Letting people keep (most) of what they earn?

It will be popular with much of the service industry workers.

And, it's not an insulting giveaway.

[imardmd1]

A tip is a gift, given gratuotously, not a wage or salary demanded. Any person can give another person a non-taxable gift of up to $10,000 dollars per year without accountability to a state or federal government. By law.

I have done such in the past myself. As long as the taxes on the gift have already been paid by the giver, no further accounting is necessary.

So it should be by a gratuitous gift to a server by one served, not demanded as a wage paid by the server's employer, no accountable to him.

[Night Hides Not]

It will be popular with much of the service industry workers.

It will be even more popular with owners of service businesses. Millions, and I do mean millions of hours will no longer be spent on keeping track of tips for tax purposes.

Reminds me of when the Form 1040 August extension was eliminated. Nearly 30 million man hours were saved by eliminating that requirement.

[PrairieLady2]

It’s not and insulting giveaway, because their hourly wage is very low, less than minimum wage. Some places do not pay a wage at all but rather the wait persons have to pay to work there.

Then, some places demand the tipped workers pay the going rate for tipping to minimum wage based bus persons whether they bussed those tables or not.
You can’t write it off as a business expense either.

If you didn’t earn the going tax rate, you are taxed as thiugh you did. There are some groups of people who simply don’t tip, or tip at a very low rate. The elderly and church goers can me counted on to tip low or not at all. Business people generallý are generous.

Wait persons deserve relief.