Bill could benefit workers that receive tips with a new tax exemption
The bill is being promoted by President Donald Trump, who hopes to sign its approval this week.
Some American workers could benefit from the approval of a new bill promoted by the Executive that seeks to eliminate federal income taxes on tips.
If this law is approved, waiters, hairdressers, bartenders, among others will benefit, although this does not mean that these workers would continue to pay state and local income taxes. So far, senators have approved the bill by a vote of 51 to 50, and President Donald Trump hopes to sign it as soon as possible.
The White House Council of Economic Advisers noted in May that eliminating tip taxes would increase the average worker's wage to $1,675 per year.
Many analysts and economists disagree with this provision. According to Ernie Tedeschi, director of economics at the Yale Budget Lab, "a deduction for tipped work is actually a terrible way to help low-wage workers. It only helps a small portion of them, and it doesn't help the lowest-wage workers because they don't have any federal tax liability to begin with," he said.
For now, the House of Representatives and Senate are debating how this law will be implemented. The House proposes that only workers with annual incomes of $160,000 or less would qualify for the tip tax exemption, while the Senate proposes that it be for workers whose income exceeds $150,000 or couples with incomes exceeding $300,000.
For Sylvia Allegretto, senior economist at the Center for Economic and Policy Research, this project will only help people with very high incomes, as well as people with middle incomes, "the vast majority of low-wage workers will not be affected because they do not receive tips," said the specialist.
In this case,Labor advocates argue that the most cost-effective way to help low-income workers across the country is to raise the federal base wage, which has been stuck at $7.25 since 2009.

