Posted on 11/24/2024 7:10:31 PM PST by RandFan
This was an early campaign promise from Trump which even his opponent endorsed (or stole)..
So it seems it will be one of his first measures to go through the new Congress?
It could be a hugely popular move especially in the service industry which is massive.
Go Trump!
(Excerpt) Read more at freerepublic.com ...
A tip is a GIFT!
Agreed. Tips are gifts. Taxable or not?
“I would prefer higher wages rather than circumvent taxes that everyone else pays.”
Amen, and again I say, amen
Went to beauty shop yesterday and gave guy who cut my hair a cash tip. He told me it didn’t matter because there’s no tax on tips. {WA state)
In other news, he cut my hair to perfection six weeks ago, but yesterday he cut it far, far too short.
If the infernal redicules scam were abolished and vaporized things would be much better.
yes you are supposed to report cash tips to the employer
reporting zero is not smart
Hubby makes that kinda dough in the restaurant biz. No tax on tips will be a huge boon to us.
Except servers really have no idea what their income will be from week to week because it’s based on the customer’s mood and/or emotions. Some ppl just refuse to tip more than 5% and servers have to wait on them regardless. The money can be great one week and then crappy the next which makes it difficult to plan a budget.
I am in the service industry.
Tips are gifts, but...they are wages too.
As the employer, we pay payroll taxes on those tips as well. This includes withholding and FICA. Eliminating taxes on tips should put more money in the pocket of both the employee and employer.
The drawback for the employee is it reduces their lifelong SS benefit amount over their working years. So from the government standpoint it should reduce that employee’s burden on the system. Essentially saying they earned less.
I’m sorry, I think this is a terrible idea. There are many people who make most of their money through tips. That is their income and they should pay tax on it, just like everyone has to do.
If this passes you are going to see movie stars being paid union scale for their hourly time and get “tipped” millions of dollars to make a movie. And I’m sure there are many other similar situations that will arise.
It’s a bad idea, the Labor nominee is a TERRIBLE idea, and the quicker Trump finds a way out of these foolish promises and choices the better.
Wow, jealous much? I never met an income tax reduction I didn't like or a tariff increase that I hated.
Then expect mediocre service, even at a high end restaurant, because no experienced server would agree to work for $18/hr instead of the $40-50/hr good servers make currently.
Then servers can take the money they’re saving on taxes and invest it in a 401k or IRA. It’s 6 of one and half a dozen of the other.
Trump’s “Fight Club” moment.
“”Look, the people you are after are the people you depend on. We cook your meals. We haul your trash. We connect your calls. We drive your ambulances. We guard you will you sleep. Do not f—k with us.””
Yep.
And you should not.
This entire thing is one big paperwork trap so the IRS can come after small businesses and people who don't make a lot of money and so can not defend themselves.
And the tax money they gain from it is minimal. Does not even cover the costs of enforcing it.
It is like BOI nonsense.
Just because the Congress says something does not make it so.
And you are the one who is whining.
Are the Democrats really going to say "If WE can't be the ones to pass it, nobody can?" Even though they supported it during the campaign?
-PJ
No.
The most they could be tipped is $18,000. And that is per year. Any more and it moves out of the "gift" category.
I am fairly sure they are not going to work for that.
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