“No tax on tips” entered Trump’s platform in his campaign, and later was joined by no taxes on overtime and on Social Security and a host of other generous promises. Now that he’s back in the White House, Trump, along with congressional Republicans, faces the challenge of turning his slogans into sections of the Internal Revenue Code.
When you include overtime, not taxing two common forms of income could be messy and complicated, while having weird effects on the behavior of companies and workers. “If there aren’t any guardrails, people could do crazy things with this,” says Christina Lewellen, Poole professor of accounting.
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This post was originally published in Poole Thought Leadership.
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