Both major presidential candidates aired last week what they billed as the economic priorities they’d pursue if elected in November. And once again the conversation shifted from meaty issues like inflation reduction and international trade policies to the sideshow matter of halting the federal taxation of tips as income. Is it all a smokescreen to keep them from addressing potentially more divisive policy pledges?
We may be past the point where the public will accept inaction, given how much time and attention has been devoted to the topic, according to this week’s Working Lunch podcast.
“This thing ain’t going away,” said Franklin Coley, co-host of the politically focused podcast and business partner of his colleague at the microphone Joe Kefauver.
As he explained, a number of key tax measures will expire in 2025, a situation that will force Congress and whoever is in the Oval Office to take up a comprehensive revenue bill. Because of all the attention the respective No Taxes on Tips proposals have garnered, that matter will have to be addressed in some way or shape, Franklin contended.
Yet there have been no indications of how the government would make up for the shortfall in tax revenues, which some estimates have put at more than $100 billion.
“The rhetoric is way, way, way ahead of reality,” said Kefauver.
What could it mean for restaurant operators? The co-hosts examine some of the implications, but note the talk has been long on the promises and short on practicalities.
Give a listen for a preview of what all the chatter portends to the presidential race as it enters the home stretch.
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