I don't have an issue with tax- free tips.Other than for blatant political pandering, why wouldn't we tax tips? Why do people in X line of work not have to pay taxes on their income, but people in Y line of work do?
My experience is people who rely on tips typically earn a lower wage. I tip based on performance, and usually tell the recipient that it is a gift, not a tip ( tax free then ).
We give all sorts of tax breaks to companies, individuals, why not service workers?