Tax free wages smell very much like deeply ingrained and publicly acceptable corruption. But it's America so it must be okay.
It is obviously deeply ingrained corruption that cash tipping, and under-reporting, has been a national pastime for decades. In fact, as the "cash discount" policies increase nationwide, there will be more corruption at the till, with entire sales going unreported. However, since many Americans in 2026 are accustomed to cashless payments, cash tipping was on its way out, and it's really hard to falsify or under-report credit-card-based gratuities!
Now that the IRS specifies non-taxable gratuities, the workers have ample incentive to simply track and report it in the open, especially the cash, because they're not docked. That... increases transparency and consumer honesty. When workers are more accurate/honest in their tax returns, the IRS garners better metrics on wages and gratuities nationwide. Everyone wins.
If I seem to be repeating myself, I am. I have no idea how this is "more corrupt" than the status quo ante. Who is corrupt in this scenario? The IRS for passing up revenue??? Please make it make sense, America-hater.