Pretty sure they’ll eliminate taxes on tips.
This is a dumbass idea. The waiter gets a tax cut but the dishwasher does not. Part of the argument being that the employer underpays the waiter because they get tipped. The probable net result will be that the house will cut the dishwasher's wage and start pooling the tips so the dishwasher can have their taxes reduced. Employer wins and the customers get fucked.
The whole country is getting tipping fatigue, plenty of news clips and youtube screeds against tipping, COVID is over, Square is fucking us with the add a tip screen on every payment. If tips are suddenly not taxed, it will be the perfect excuse for a tip fatigued public to just start tipping less. So then in the end the staff gets fucked, and the only winner is the employer.
Then 20 years from now when Dolores from the coffee shop lines up to get social security, her check is less because a huge part of her income wasn't taxed and doesn't count towards her social security benefit. Then everyone gets fucked because we gotta bail our Dolores.
Tips are no different than any other income. They should be taxed. If tipped workers are struggling, the answer isn't to tax them differently, the answer is to pay them more or lower the taxes on the lower brackets. Of course Custard thinks that having progressive tax brackets is just a way for the government to take more of our money so we can't do that.