Journalist on federal tax exemption for tipped income: 'A huge yes'

Journalist on federal tax exemption for tipped income: 'A huge yes'

Economics
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Cornelius Duncan, Journalist for the Gospel World News Inc. | x.com

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Cornelius Duncan, a journalist at Gospel World News Inc., expressed strong support for the proposed legislation to exempt tips, Social Security, and overtime pay from federal income taxes.

"No tax on social security," said Duncan. "No tax on tips. No tax on overtime."

The "No Tax on Tips Act" (H.R.482) was introduced in the U.S. House of Representatives on January 16, 2025, by Congressman Vern Buchanan and 14 co-sponsors. The bill seeks to amend the Internal Revenue Code to allow a deduction for qualified tips, effectively exempting them from federal income tax. The legislation is particularly relevant to traditionally tipped occupations such as waiters, hospitality workers, and beauticians.

According to the Peterson Foundation, eliminating taxes on tips could increase federal deficits by at least $100 billion over ten years. The proposal may also reduce revenues dedicated to social insurance trust funds, potentially impacting programs like Social Security and Medicare.

As reported by The Guardian, nearly six million workers in the United States rely primarily on tips to earn a living. Under federal law, employers can pay tipped workers as little as $2.13 per hour—a rate unchanged since 1991. Only seven states—Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington—have eliminated this sub-minimum wage. Diana Bond, a server in Las Vegas and member of the Culinary Union said: "I hardly get a paycheck making $17.79 an hour. Can you imagine anywhere else that has a way less hourly rate than that? They’re definitely suffering and hardly getting by."

Duncan is both a journalist and pastor affiliated with Gospel World News Inc., where he shares faith-driven commentary on political and cultural events. He describes himself as "Living, loving, laughing, watching the Eastern Skies for JESUS to come" and is known for his evangelical messaging and conservative political posts according to his X profile.

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