The Economic Logic Behind the "No Tax on Tips" Policy Flashcard

Front

Who first introduced the proposal to eliminate federal taxes on tips?

Back

Donald Trump

Front

What percentage of the U.S. labor force relies on tips as the bulk of their income?

Back

2.5%

Front

What is the federal minimum wage for tipped employees?

Back

$2.13 an hour

Front

Which tax credit often reduces or eliminates federal income tax liability for low-income workers?

Back

Earned Income Tax Credit

Front

What is the concept of concentrated benefits and diffuse costs?

Back

A theory explaining why small groups often achieve favorable policies.

Front

Which state has the highest concentration of tipped workers?

Back

Nevada

Front

What is rent-seeking behavior?

Back

Seeking financial benefits through the political process.

Front

According to the text, what is the median hourly wage for waiters and waitresses in May 2023?

Back

$15.36

Front

What is the typical age difference between non-tipped and tipped workers?

Back

10 years

Front

What percentage of Americans are uncomfortable with more types of businesses and services asking for tips?

Back

64%