I pay taxes on social security and that’s not income. So why shouldn’t tips be taxed? It is concerned income.
You were taxed out of your income for Social security, & now you are getting it back. Just as if you’d set aside income (untaxed) from the original IRA & now are taxed on it as you receive it. Now a Roth IRA was already taxed, so it’s not taxable when you start to withdraw. I guess that’s the question...were you taxed on your total income or was the amount that went to SS removed from your income before taxes?
A tip is a gratuity, a gift. Gifts aren’t taxed unless they exceed a certain level. I think it used to be $10k, & the giver was responsible for the tax. I think the amount you can gift someone with no tax liability is higher now. I have no problem with tips being non-taxable.
Why shouldn’t taxes be imposed on tips?
Because he needs to win Nevada.
I was a 1099 employee for more than a decade. Why was that taxed? (I know it’s rhetorical; its income.)
All of the rhetoric about what should be taxed and what shouldn’t be is just another indication of what a bad amendment the Income Tax was. You would think “income” would be easily defined. But this garbage allows the politicians to slice and dice it to pay off their supporters.
Go back to tariffs and fees. And let the government beasts shrivel up and die.