By ARIS FOLLEY | The Hill
Former President Trump’s plan to end taxes on tips could come with a price tag of $250 billion, a budget watchdog estimated in a new analysis.
The Committee for a Responsible Federal Budget estimated Sunday that exempting tip income from federal income and payroll taxes could lead to a decrease of $150 billion to $250 billion in federal revenues over a decade.
The watchdog noted the estimate was calculated on “a static basis” and that it does not factor in certain behavioral effects but is instead the “net of revenue gains” from eliminating the Federal Insurance Contributions Act Tip Credit.