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Season 6, Episode 134

Nina Mast on the hidden flaws in the 'No Tax on Tips' policy

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Nina Mast

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Economic Policy Institute 

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Nina Mast, Economic Analyst at the Economic Policy Institute, joined the America's Work Force Union Podcast to discuss the shortcomings of the "No Tax on Tips" policy. She explained why this policy fails to benefit most workers, how it compares to raising the minimum wage and the broader implications for tax policy and worker welfare.

Mast said the "No Tax on Tips" policy primarily benefits high-earning tipped workers and employers, not most tipped employees. She noted that the wages earned by many tipped workers are too little to pay income tax, rendering the policy ineffective for those who need it most. Instead, Mast advocated for raising the minimum wage and eliminating the tipped sub-minimum wage, which would benefit nearly 23 million workers, including 3 million tipped workers, with no expiration date.

Mast continued by highlighting the proposed policy's temporary nature, which is set to expire after four years. This short-term approach contrasts sharply with more sustainable solutions like increasing the minimum wage. Mast said the policy shifts the burden onto taxpayers while allowing employers to avoid raising base wages, perpetuating a system rife with exploitation and discrimination in tipped industries.

Finally, Mast provided more context on the "No Tax on Tips" policy within broader tax proposals. She said it aligns with a pattern of shifting tax burdens onto low-income individuals while providing substantial cuts for the wealthy. Mast warned that such policies often come at the expense of crucial public programs and services, potentially leading to millions losing health insurance and food stamp benefits.

For more from Mast, listen to the full episode of the America's Work Force Union Podcast above.


America’s Work Force is the only daily labor podcast in the US and has been on the air since 1993, supplying listeners with useful, relevant input into their daily lives through fact-finding features, in-depth interviews, informative news segments and practical consumer reports. America’s Work Force is committed to providing an accessible venue in which America's workers and their families can hear discussion on important, relevant topics such as employment, healthcare, legislative action, labor-management relations, corporate practices, finances, local and national politics, consumer reports and labor issues.

America’s Work Force Union Podcast is brought to you in part by our sponsors: AFL-CIO, American Federation of Government Employees, American Federation of Musicians Local 4, Alliance for American Manufacturing, Anthem Blue Cross Blue Shield, Brotherhood of Maintenance of Way Employes-IBT, Boyd Watterson, Columbus/Central Ohio Building and Construction Trades Council, Communication Workers of America, Mechanical Insulators Labor Management Cooperative Trust, International Association of Heat and Frost Insulators and Allied Workers Local 50, International Federation of Professional and Technical Engineers, International Union of Bricklayers and Allied Crafts, International Union of Painters and Allied Trades District Council 6, Ironworkers Great Lakes District Council, Melwood, The Labor Citizen newspaper, Laborers International Union of North America, The National Labor Office of Blue Cross and Blue Shield, North Coast Area Labor Federation, Ohio Federation of Teachers, United Labor Agency, United Steelworkers.

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