ARE TARIFFS AND NO TAX ON TIPS GOOD POLICIES?

ARE TARIFFS AND NO TAX ON TIPS GOOD POLICIES?

Trump’s proposal to eliminate taxes on tips sounds good but careful analysis shows it would benefit few workers, be unfair, create perverse incentives, and open a door for tax avoidance. On the other hand, tariffs can be used effectively, but Trump’s on-again-off-again, high, broad-based tariffs are already hurting our economy and will raise prices for consumers and businesses. They are also ripe for political corruption. (Note: If you find a po…