Economists explain hidden downfalls of ending taxes on tips
PBS News Hour - Segments
PBS NewsHour
4.1 • 1K Ratings
🗓️ 19 September 2024
⏱️ 8 minutes
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| 0:00.0 | Tax cuts and credits have been a popular theme during this campaign. |
| 0:05.0 | Former President Trump's latest proposal is ending a cap on the federal deductions taxpayers get for paying state and local taxes. |
| 0:13.0 | A cap he implemented as president |
| 0:16.0 | and a change that could cost more than a trillion dollars over a decade. |
| 0:20.0 | Both candidates have also proposed several tax breaks and have |
| 0:24.2 | have not always explained how to pay for them. |
| 0:26.8 | That's true of one idea, Trump and Vice President Harris |
| 0:30.2 | support. |
| 0:30.9 | No taxes on tips. Economics correspondent Paul Solomon looked at what's behind |
| 0:35.9 | that proposal and some concerns around it. |
| 0:38.6 | Prince Chickata, bartender at Bus Boys and Poets in Washington, D.C. 80 to 90 percent of his income |
| 0:49.0 | from tips. Suppose they were no longer taxed. |
| 0:52.3 | That would be great. |
| 0:54.0 | No taxes on tips. |
| 0:56.0 | It was a proposal first floated by former President Trump in June. |
| 1:01.0 | When I get to office, we are going to not charge taxes on tips. |
| 1:07.0 | Vice President Harris adopted the idea in August. |
| 1:10.0 | When I am President, we will continue our fight for working families of America, including |
| 1:17.3 | to raise the minimum wage and eliminate taxes on tips for service and hospitality workers. |
| 1:25.0 | On Capitol Hill, don't tax tips bills were introduced this summer with bipartisan support. |
| 1:32.9 | What's the average tip you get? |
| 1:34.4 | Anywhere between 15 and 20. |
... |
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