No, Mr. President, I will not tip my plumber
The administration’s list of jobs that qualify for its tax break on tips is an affront to good tax policy.
I have never tipped a plumber. They are well-paid tradesmen who don’t depend on me slipping them some extra cash to make a living. They can ruthlessly dictate the price when you’re facing a sewage emergency or basement flood. Plus, they are supposed to offer an up-front quote for their services that lets you shop around — as long as you aren’t facing the immediate catastrophe of an exploded pipe.
Slapping on an extra 10% to express my gratitude? No thanks.
So I couldn’t help but tear out a precious bit of my thinning hair when the Department of the Treasury recently released its preliminary list of occupations that will be eligible for tax-free tips thanks to the Republican Party’s One Big Beautiful Bill Act (OBBBA).
Along with waiters, bartenders, and Uber drivers, the document stretched on to list dozens of other jobs, including all manner of home contractors: Electricians, HVAC installers, roofers, appliance repair guys, flooring specialists, window installers, and — yes — plumbers all popped up. Based on the data I’ve reviewed, there’s no evidence these workers earn much money off tips today, but they’ve certainly been given a big incentive to start.
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