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Like many in the service industry, Kramer is in favor ofPresident-elect Donald Trump’s campaign promise to eliminate tax on tips, one that Vice President Kamala Harris also endorsed with certain guardrails and whichhas already seen movement in Congress.

“Of course, it will make me less stressed (to have) a couple hundreds in my pocket,” Kramer said. She added she isn’t sure if she currently makes enough from bartending to pay federal income tax.

But whether Kramer could actually see those savings is uncertain. With Trump slated to take office in January, only a small sliver of employees – which include restaurant servers, hospitality workers, waiters, bartenders and hairdressers – would see the tax benefit. That’s because a large share don’t earn enough to pay federal income tax.

where could uflex limited (500148) be headed ✌️【Stock Picks】✌️ Precise predictions of market trends with real-time stock indices and futures data to help you make wise investment decisions. Trump had previously suggested he would eliminate federal income and payroll taxes on tips. But questions remain on how that would work and whether it would be possible to eliminate both those taxes. Trump has not provided many details about the specifics of his plan.

where could uflex limited (500148) be headed ✌️【Stock Picks】✌️ Professional investment advisors provide up-to-the-minute market data, helping you analyze stock trends and select high-potential stocks. Achieve capital growth with well-researched strategies based on expert insights. Tax cut promises were among the biggest economic reasons why some communities voted for Trump. With many Americans worn down by inflation,a flurry of pledgesincluding on overtime pay and Social Security benefits also struck a chord.

But it was the no tax on tips promise that had the most sticking power, said Heidi Shierholz, president of the Economic Policy Institute. Economic experts told 【 - Free Real-Time Trading Opportunities 】 Trump could put his promise into action, especially because versions of the pledge have received bipartisan support. Bideneven indicatedhe supports it, along with raising the minimum wage.

But critics say there are thorny issues involved and that such a change wouldn’t help that many low-income employees. Kramer herself isn’t sure if she qualifies for the threshold to benefit.

Despite their small numbers, tipped workers are highly visible in American life. About 4 million people worked in tipped occupations in 2023, or about 2.5% of all employment, according to the Budget Lab at Yale University, a policy research center.

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John Seymour, the owner of sit-down restaurant chain Sweet Chicks in New York City, said that full-time employees at his restaurant would likely make enough to meet the threshold to owe income taxes. But in a city like New York, many front-of-house staff are only working part-time.

“The only effect that it (cutting taxes on tips) has is a positive effect. Them (the staff) earning more of an income is always a benefit to us,” Seymour said. Minimum wage isn’t enough to pay the bills, he added.

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where could uflex limited (500148) be headed ✌️【Stock Picks】✌️ Expert predictions of stock trends to help you select high-potential stocks accurately, along with free real-time market data on stocks, futures, and commodities. Maximize your growth potential by staying updated on market movements. While not every tipped worker meets the threshold for owing income taxes, every worker in America pays payroll tax on their first dollar of income. Trump has briefly mentioned eliminating payroll taxes on tips; while that would ensure that every tipped worker gets some benefit, it also raises the cost and brings up more complicated issues.

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Cutting payroll taxes could impact the lifespan of Social Security and Medicare. Social Security is alreadypredicted to be insolventby 2034, according to the Social Security trustees.

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Businesses and workers could also find ways to take advantage of the law, such as reclassifying commissions and bonuses as tax-free tips if there aren’t sufficient legal safeguards.

where could uflex limited (500148) be headed ✌️【Stock Picks】✌️ Free access to global stock market data, with real-time updates on indices, futures, and commodities. Make informed investment decisions with the help of expert advisors and accurate stock trend predictions. Many economic experts who spoke to 【 - Free Real-Time Trading Opportunities 】 advocated for raising the federal minimum wage for tipped workers. The tipped minimum wage hasn’t been adjusted since the 1990s, Tedeschi said.

where could uflex limited (500148) be headed ✌️【Stock Picks】✌️ Accurate stock market predictions with real-time stock indices, futures data, and global market trend analysis. Achieve stable growth and avoid losses by staying ahead with our expert recommendations. The federal minimum wage for tipped workers is $2.13 an hour, but they must make at least the federal hourly minimum wage of $7.25 or their employers have to cover the difference. Many states and municipalities have higher minimum wages and minimum tipped wages, while some states have eliminated lower minimum wages for tipped workers.

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“If tip workers were all getting $17 an hour as a base wage that would matter so much more than not having to pay income taxes on their tips,” Shierholz said.

“If you want to help working people, then you should have policies that are about the level of your income, not the type of income that you earn,” Shierholz said.

Comparing a waiter at Waffle House and a cashier at McDonald’s, “they’re both low-income workers, both essentially in fast food service, but because culturally we tip one, there’s one that might get a benefit from this proposal,” Tedeschi said.

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