'No Tax on Tips' Proposal Meets Limits of Reality

[kkmarie]

8. What do you do to live if you have a job where your tips are so important to day to day living

I worked as a waitress (1972 to 1976) my hourly pay was $1.60 per hour. Then I began bartending hourly was $2.20.
Effective February 2025 minimum wage for tipped employees is $4.74, here in Michigan. If you are lucky enough to get a job waiting tables or tending bar where you are working 40 hours a week at $4.74 per hour, you're grossing $189.60 per week. In Michigan your net is $175 per week. And multiply by 4 weeks your net for the month is $700.

A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee's tips combined with the employer's direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.

https://www.dol.gov/general/topic/wages/wagestips#:~:text=An%20employer%20of%20a%20tipped%20employee%20is,the%20employer%20must%20make%20up%20the%20difference.

$2.13 is the federal minimum wage