Experts say no tax on tips will not benefit workers

The video discusses the political divide on tax policy, focusing on a proposal to eliminate taxes on tips. Both political parties surprisingly agree on this issue, but experts like Steven Rosenthal argue it is not beneficial. The proposal could lead to revenue losses and only help a small fraction of workers. Alternatives like raising the minimum wage and increasing corporate taxes are suggested. The federal minimum wage has not kept pace with inflation, and while many states have taken action, it remains a contentious issue on Capitol Hill.

What is the main issue that both Republicans and Democrats agree on regarding tax policy?

• Reducing the federal deficit

• Increasing corporate taxes

• Eliminating taxes on tips

• Raising the minimum wage

According to tax expert Steven Rosenthal, why does the proposal to eliminate taxes on tips score poorly?

• It encourages fair compensation

• It is a revenue raiser

• It benefits all workers equally

• It increases the federal deficit

What is one potential consequence of eliminating taxes on tips, as mentioned by Steven Rosenthal?

• It will decrease the number of tipped workers

• It will lead to more workers relabeling their wages as tips

• It will improve tax equity

• It will increase worker productivity

What alternative solution is suggested to better support lower and middle-class workers?

• Reducing corporate taxes

• Implementing a flat tax rate

• Exempting tips from taxes

• Increasing the minimum wage

How has the federal minimum wage changed since 2009?

• It has increased by 29%

• It has remained the same

• It has decreased by 29%

• It has doubled