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.
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.