Salons Seek to Capitalize on Tips Frenzy for Tax Credit Push

Beauty salons and barber shops want to use momentum behind both presidential hopefuls’ campaign proposals to end taxes on tips, to reach parity with the restaurant industry they’ve been trying to get for 30 years.

Those businesses, mostly owned by women and often by members of minority communities, are pushing to give hair and nail salons, barber shops, and spas the same federal payroll tax credit that’s available only to restaurants—the other major industry where tipping is common. Food and beverage employers can reduce their tax burden by claiming a credit for the Medicare and Social Security taxes they pay ...