I write to say shame on both Sen. Susan Collins and Sen. Angus King for voting for the No Tax on Tip Act that, if enacted, would create a federal income tax deduction of up to $25,000 a year for cash tips for eligible employees in jobs that “traditionally and customarily” receive tips as defined by the Treasury Secretary, beginning in 2025. Eligibility would be limited to those making less than $160,000 in 2025, adjusted annually for inflation.

Not treating “tips” as taxable income is appalling tax policy and both senators are conscientious enough to know that. What pandering is next? Carve outs for bonuses, or income earned after 40 hours of work a week?

In addition to creating an inequity between tipped workers and everyone else, reducing the Social Security credits for many who most need them, if enacted, the income exemption adds substantially to the federal deficit.

The federal deficit for fiscal year 2024 was $1.8 trillion, an increase of $138 billion compared to the previous year. (Total government spending was $6.75 trillion, while total revenue was $4.92 trillion in FY 2024) Even without the enactment of the President’s “big, beautiful bill,” the deficit is projected to increase to $1.9 trillion next year. The total federal debt, as of December 2024, was about $36 trillion dollars.

Piecemeal, pandering tax policy exacerbating inadequate tax collections by two of our more thoughtful senators is really disappointing.

John Lambert
Cumberland