Experts: Why we tip, and why impact of eliminating taxes on tips would be minimal
September 18, 2024
September 18, 2024
BLACKSBURG, Virginia, Sept. 18 -- Virginia Tech issued the following news:
Eliminating taxes on tips an idea supported by both major party 2024 presidential candidates could benefit some service workers but the overall impact may not be that dramatic, says a Virginia Tech expert.
There are roughly 4 million workers for whom tips make up a significant portion of their income. However, more than a third of those workers don't earn enough to end up owing federal taxes.
Eliminating taxes on tips an idea supported by both major party 2024 presidential candidates could benefit some service workers but the overall impact may not be that dramatic, says a Virginia Tech expert.
There are roughly 4 million workers for whom tips make up a significant portion of their income. However, more than a third of those workers don't earn enough to end up owing federal taxes.