I don’t think the tax proposal changes the min. wage.
“No tax on tips” and
“No tax on overtime” are both very substantial ways of increasing money of working men and women in the lower two quintiles.
They are the ONLY two sets of peole whose income have not kept pace with inflation in recent decades.
Stay at home on your ass, got income increases faster than inflation. (both with and without making babies)
Third quintile, fourth quintile, and top quintile all got income increases faster than inflation.
Meanwhile
Something about exporting millions of low-end workers
while off-shoring millions of low-end jobs
has left workers in the lower two quintiles behind. These tax changes are a way of undoing part of that.
I think it would be better to raise the threshold for any federal income tax. That benefits all working poor americans, not just the ones who happen to work in tip based industries.
It’s just not as sexy to say on the campaign trail. But what’s the difference between the labor and situation of the waiter hustling tips at Applebees and the shelf stocker at Walmart working for $18/hour?
I don’t think it will affect that. But would that be a bad thing if it did? I think some of these crap places only exist because of that law. If they went back to having to pay min. wage, only the best would survive.
I’m very unsure that’s the case. There will be a lot of time spent determining what exactly counts as a “tip” and to which occupations a person can claim tax free “tips”… and a mess of reclassifications of employees.