Yup, they beat me to the punch but ensure a living wage.
Also, we can try to be careful but everytime we add a "Type of income X isn't taxed" the majority of untaxed income under that rule comes from the wealthy... dodging taxes is worth millions of dollars so the wealthy can hire teams of accountants to find loopholes.
I would be concerned about having wait staff and other tipped positions be paid a livable minimum wage because it may cause people to stop tipping, which would result in a pay cut. There wouldn't be the argument "They don't even make minimum, I need to tip them.", it would become "They make 22.50 an hour, I don't need to tip them."
When I worked as a delivery driver, I did well only because of tips. If I was paid minimum wage and people stopped tipping, I would have been fucked.
If they get paid a livable minimum and tips are still just as generous, that would be a huge win for people that could use it.
But seriously: If a federal livable wage ($20+, adjusted regularly) killed tipping, what a relief that would be to most people. Tipping should return to being an unexpected surprise for truly exceptional service.
You tip because they don’t make a minimum wage. I don’t get a tip when I do my work at my job. I certainly would be motivated to do a lot better if I got a tip after every meeting.
I worked as a delivery driver and I did expect tips because I barely made money doing the deliveries but can’t expect it if I’m making a living wage.
The sub min definitely needs to go. But my state is double the fed min and requires state min for wait staff. Min still isn't a living wage, and tips are still needed.