"No Tax on Tips" meant for low income taxpayers so most of the major digital creators won't qualify.
Low income digital creators can deduct upto 25k in tips, so if their income from tips and other sources is below $150k a year, their taxable income will be 25k less.
Median single income in the US was around $45,000 in 2024. $150K is not low income. It goes to $300K if filing jointly.
Major creators may still not get much since it's a power law distribution, but the tips thing is in no way limited to low income.
Generally correct, low income digital creators will benefit the most since "No Tax on Tips" will reduce their taxable income by 50% or more in comparison to someone who earns close to 150k which isn't a low income according to BLS as you pointed out.
If you look at tax brackets plus the standard deduction lowering the bracket it affects, it will be a flat or regressive change in take home income amongst the cohort until at $90K or maybe a bit more, double median income, where you can start writing off against the 22% bracket. Assuming 50% tips.
I have no measure of scale on 150k dollars a year in terms of creators scale...
I remember something like 2k$ youtube ad revenue for 1M views, so that's like 1M video every 4 days? or was it 2M views per 1k dollars, then it's 1M video every day?
$1 per 1000 views is a good estimate. Depends wildly on content.
I've seen that same figure for YT ad revenue alone. sponsorships can range from $0.015-0.030 per video for channels with 1k to 50k subscribers.
at a biweekly cadence, they'd need ~6M views per video to hit $150k with ads alone. if you figure another $0.025 per view for sponsorships, then they would need 6M views per year or about 240K per video.
looking at Patreon stats, it seems reasonable to assume that a channel with 25K subscribers could pull in about 1K Patreon subs with effort. if each is paying $5/mo, then that would add another $60K/yr in revenue (though I imagine a lot of that would get eaten up by fees and extra costs.
What's crazy is I just paid $450 to Google for 15k views of my youtube ad (views, not impressions).
So would be $30k for 1M ad views.
Of course a bit apples to oranges since not all youtube videos have mandatory ads, etc.
you don't use adblock?