DeComposed > My understanding is that figuring out how to enact and enforce it would be an Accountant's worst nightmare
Actually,
"No tax on Tips" should be pretty easy to 'enforce'. As in nothing to enforce. Cash tips go into the pocket of the person who 'earned' them. Tips paid via the cash register / credit card ought to be readily tallied up by said register - simply pay them out to the relevant employees at the end of the day. Hourly wage income is taxable. 'Tip Income' should not even need to be reported.
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