Eh.

People already vastly underreport their tips. This just codifies it in to law. I’m not saying it’s right but I also doubt it’s hitting the IRS’s coffers especially hard.

Logically, it would make sense to me to make it dependent on how much of your income comes from tips. It doesn’t really make sense that wait staff shouldn’t pay taxes on their tips, as it’s basically just their income but paid by third parties. When I was doing wedding photography and someone gave me a tip on top of my normal fee, that feels more like a gift than my income. It was fairly rare and was nowhere near the majority of my income. That, logically, shouldn’t be tipped as long as other gifts aren’t.

But that would be complicated, so here we are.