Trump Has It Exactly Wrong About Tipping: Allison Schrager

Tipping is terrible. Almost no one likes it. And as it has become more ubiquitous, it has also become even more unpopular.

Undeterred by any of this, Donald Trump has an idea sure to make tip jars and in-app tip requests even more common: In a <-bsp-bb-link state="{"bbHref":"bbg://news/stories/SEVGY3DWLU68","_id":"00000190-368a-d497-a7fb-fe8f92bb0000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">speech last week in Las Vegas, he said he would make tipped income <-bsp-bb-link state="{"bbHref":"bbg://news/stories/SF8SLNDWX2PS","_id":"00000190-368a-d497-a7fb-fe8f92bb0001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">tax-free. As a result, more pay would likely be defined as tipped income. Not only would that bring in less tax revenue at a time when it is sorely needed, it is also bad economics.

The normal justification ...