In a rare case of bipartisan agreement, presidential candidates Donald Trump and Kamala Harris both advocate exempting tips from federal income taxes. This stance remains popular among voters, particularly in Nevada, where many casino, hotel, and restaurant staff primarily depend on tips.
The expansion of tip expectations has intensified since the pandemic, with many consumers increasing the size of tips across different service situations, which ultimately added to the financial burden of these practices.
A Pew Research Center survey last November reported that 72% of U.S. adults feel tipping is expected at more places than five years ago, suggesting a significant shift in social norms surrounding tipping.
Three out of four respondents in a WalletHub survey agreed that tipping has spiraled out of control, indicating a widespread feeling of discomfort and stress associated with tipping across various service environments.
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