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Stop taxing tips.

Donald Trump recently promised that if he wins the November election

he will

will support eliminating taxes on tips as part of his proposal to

renew and expand the 2017 tax cuts. This tax law change would be a long overdue boost for millions of

Americans. Tips often comprise a substantial portion of the earnings of waiters and waitresses,

as well as other service sector employees.

However, unlike regular wages, a service sector employee usually has no guarantee of or a legal

right to a tip.

Instead, the amount of a tip usually depends on how well an employee satisfies his customers.

Since the amount of taxes one pays increases along with the size of tips,

taxing tips punishes workers for doing a superior job.

Many service sector employees are young people trying to make money to pay for their education or single parents struggling to

provide for their children. Making tips tax-free gives these hard-working Americans

an immediate pay raise.

A person may use this pay raise to devote more resources

to his children's or his own education

to save for a home or retirement or to start a business.

Eliminating taxes on tips will provide some limited relief

from the Federal Res's inflation tax.

This tax results from the decline in the dollar's purchasing power

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