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Easier way is to put a cap on how much you make. Let’s say 70k. Make more you don’t get the exemption prevents the rich from gaming the system.

Also define tips by industry. Service sector. End of story.

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If you put a cap on income, then both you and the IRS need to maintain a record of the tips you received, to prove that you’re on the right side of the cap.

I don’t think that saves much in administration costs.

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