6/10/25

Given the current budget deficits and continued profligate spending, why does Congress’s latest tax bill include exclusions for certain income, specifically taxes on tips and overtime? ALL and ANY earned income should be taxable at the same level as any other. By not simply lowering rates to encourage work and investment, these exclusions fail to be pro-growth. Instead, they are likely to distort behavior by favoring one action over another. Excluding taxes on Social Security might be considered as reasonable as the money that was paid in to the program was originally confiscated from the employee and their employer. At least they’ve tried to eliminate some scams like tax credits for electric vehicles.