"No Tax on Tips" Bill Overview - The "No Tax on Tips" provision in the "One Big Beautiful Bill" allows tipped employees to deduct up to $25,000 from their federal tax filing each year, starting in 2025 and lasting through 2028 [1][6] - Individuals earning $150,000 or joint filers earning $300,000 are disqualified from this deduction [6] - The IRS has provided penalty relief for the tax year 2025 as taxpayers adjust to the new policy [9] Potential Benefits - The provision is projected to increase average take-home pay for tipped workers by $1,300 per year [2] - Small businesses may benefit from improved employee retention, as replacing a tipped employee is estimated to cost around $8,000 [14][15][16] - Nevada, with approximately 25% of its workforce in tipped jobs, stands to benefit significantly [11][12][13] Criticisms and Concerns - 37% of tipped workers may not benefit as they already face zero federal income tax burden [4] - Low-income households may not benefit and could be negatively impacted by Medicaid and other social services cuts associated with the bill [5] - The policy exacerbates the existing tipping system, which is viewed negatively by nearly 90% of Americans who believe tipping has gotten out of control [3][4] - Experts argue that the bill creates unequal tax treatment compared to other professions [17] - The policy excludes auto gratuities and service charges, which could be shared with the entire staff, not just customer-facing employees [26][27] Alternative Solutions - Some suggest increasing the minimum wage to provide more stable earnings for low-income workers [20] - Eliminating the subminimum wage is proposed as a way to address wage inequality [22] - Innovative pay models, including auto gratuities and service charges, are being explored to ensure fair wages while allowing businesses to thrive [25][26]

Turkey raises the minimum wage for next year by 27%, broadly in line with market expectations https://t.co/gwpMHFpaTM ...

Hungary will raise minimum wages by a double digit margin next year as Prime Minister Viktor Orban’s government struggles to give momentum to a stagnant economy https://t.co/WCE9nmUUf9 ...

Under Labour the minimum wage has reached a point where a grad-schemer working late at a Big Four firm can earn less per hour than the person cleaning their office.Yet the party is haemorrhaging support to its left https://t.co/7dAwAHRjqi ...

Although raising minimum wages invariably polls well, electorates everywhere are also angry about soaring prices and a crisis of affordability. There are better ways to help low earners https://t.co/R8EKBapUiG ...

With another above-inflation increase coming from April, the UK's minimum wage remains among the most generous in the world. Yet if Chancellor of the Exchequer Rachel Reeves wants to tackle inflation, this is an odd way to go about it. https://t.co/OvHuITF6nI ...

Economic Policy & Labor Market - Minimum-wage rises lead to economic distortions [1] Artificial Intelligence - The costs associated with using AI to write cover letters [1] Education - Florida is conducting a radical education experiment [1]

Economic Policy - Raising minimum wages is popular in polls, but electorates are concerned about rising prices and affordability issues [1] - There are more effective strategies than minimum wage increases to support low-income earners [1]

Britain will increase the minimum wage for workers aged 21 and over by 4.1%, in a bid to help low-earners that experts have warned would harm small businesses and stoke inflation https://t.co/ostFXImFTo ...

“There is a growing body of economic literature which finds that minimum wages have hidden costs.” @econcallum describes the distortions, on “The Intelligence” https://t.co/w84bTGESGx ...