Not Taxing Tips Could Lead to Unintended Consequences

Politico: “The idea has caught fire with those workers and the union that represents many of them. But economists on the left and right are sounding alarms about unintended consequences.”

“Depending on how such a tax cut is structured, they warn, it could pile onto the already unsustainable federal deficit, ding Social Security and Medicare, and open a tempting loophole for high-end earners like financiers to recategorize their income to shield it from taxes.”