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Former president Donald Trump first raised the issue in June while talking to Nevada voters.
Now, Vice President Kamala Harris wants to stop taxing tips, too.
GOBanking Rates spoke to Siggins and other experts about the eight ways thatnot taxing tips might affect your wallet.
Tipflation
Tipping was often a thank you gesture for receiving good customer service.
Now, a tip of at least 20 percentis customary.
That guilt can equal $453.60 a year.
However, more than 5 million people rely on tips to supplement their income.
The national minimum wage is $7.25 an hour, but states can set their rates.
Harris is also taking a carrot-and-stick approach to not tax tips.
However, changing federal income taxes on tips could also make the tax code less efficient.
Not taxing tips makes the tax code more complex and treats similar income differently, Winegarden said.
Either way, overall economic growth will be negatively impacted, Winegarden said.
As a result, the proposal will reduce income growth, which will harm consumers.
Harris and Trump said they wouldnt touch Social Security money if elected.
However, the federal program faces apotential shortfallif policymakers dont take steps to shore up funds.
Vice President Harris has talked about installing guardrails to insure the benefits go to service works, Thompson said.
She will have to work closely with Congress to ensure that happens.
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