Just the Tip(s)

Published January 22, 2025

“Tax free tips” sounds pretty good. Gig work is tough and every dollar counts. As more and more careers are shifted into gig work (BetterHelp, Uber, Fiverr, all of it), there will be ever more tax-supported workers — and therefore ever more support for tax free tip policies to lighten the financial load.

Which is great up till tips overtake salary as the primary source of income in a broader sense. At that point, we’re back in a place where you’re paid what the guy in charge thinks you’re worth in that moment, on that day, for that task. And of course always dependent on how much the boss likes you. Every day becomes a race to the bottom. And in this world, you’re paying out of pocket for health care, child care, expendables, everything. Don’t like it? They’ll find somebody that does, or at least someone better at pretending about it than you.

And that’s without considering any promises to get rid of income taxes, which would negate the benefit entirely. Because if we get rid of the income tax, what’s left is sales tax, which will only increase to cover the lack — eating even further into all those tax free tips.

Which, taken altogether, makes tax free tip policies not sound so good no more 🤷‍♂️

Last modified January 22, 2025