Tax‑free tips fuel tip creep

Treasury’s preliminary list for OBBBA’s tip exemption reportedly includes skilled trades (plumbers, electricians, HVAC) that rarely receive tips today. By making those tips tax‑free, the policy creates a strong incentive for contractors to solicit gratuities, shifting price transparency and compensation norms beyond hospitality. — Government‑driven expansion of tipping into quoted, professional services could reshape consumer costs, labor norms, and the tax base.