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Tips and overtime should not be tax exempt. The tax base needs to be broadened not shrunk give our sky high deficits and national debt.
This was a naked tip-o-the-hat to a selected class of workers. I agree it is poor tax policy since there is no rationale behind it. That said, I am all for making life more affordable for people who get tips, but OT is often earned by people in higher income brackets.
It’s especially outrageous since the premium part of overtime is exempt even for couples earning up to $300,000! Make that $50,000 or $75,000 tops, and I’d say it’s maybe okay. Still makes no sense from a policy POV.