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!
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There's also talk about a flat tax and other radical measures dealing with the tax code. Maybe because of the economic outlook.
No, the “talk” was about import tariffs not the flat tax. Then again you knew that.
I’m sure I read something about a flat tax.
Anyway, there’s lots of talk about tax reform which is a good thing
Gifts are only taxable when they are over $18,000 a year from one entity to a person.
Tips never should have been taxed in the first place.
It is like having to pay taxes on your birthday check from grandma.
It will be popular.
A bartender can make $500.00 a night on Friday and Saturday and a couple hundred on other nights, and a waiter at a high end restaurant can make $750.00 on a busy night.
No tax on tips will go a long way in helping them.
I am not really sure it is a ‘gift’ when it is automatically added. The waiter isn’t a friend or family either. I would prefer higher wages rather than circumvent taxes that everyone else pays.
No tax on social security benefits is a large group who are reliable voters.
“ I’m intrigued to see how this goes...”
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It needs to go “no INCOME TAX ON TIPS”. FICA taxes should still be covered so that “non-FICA covered” tips don’t hugely adversely affect the amount of social security benefits that the tipped workers eventually receive.
A service charge is added to a bill when it is a large party and so the venue is put to more trouble than normal. They have to move the tables and chairs around and move them back, extra cleaning and so forth.
Service charges are not paid to the server but go directly to the venue.
If say after the event you gave each of the servers a hundred dollars because they did a great job that would be a tip.
I agree that one makes little sense too.
Go Trump. I’d like to see a lot of tax relief and some ideas
Yes that’s what I thought. More money in their pockets no one can argue against this. It should go through quickly/.
I’m all for it. I don’t think you need an act of Congress, but that will help make it permanent. It’s just an IRS regulation afaik. Trump can sign it away.
Even better
There is a way around tax on tips.
If you pay for a service on a credit card, pay the tip in cash.
I had a conversation with a bartender about this. He told me that credit card tips are reported as income, but cash goes in his pocket and no one needs to know.
Help out our fellow Americans who work for tips.
Pffft. Bull crap. It’s money people give you on account of you doing you job, and these days it’s practically extorted.
When Trump came up with this I said I was willing to go along because of the urgent necessity of winning. Still it’s like chewing glass to me. I worked very hard to get in the top quintile that pays 41.4% of all income taxes. Government’s endless schemes to supposedly lower the burden on, and expand, the bottom 40% that pay no taxes at all are paid for right out of my wallet. But what makes it insufferable is when it’s suggested that tipping your waiter is in the slightest sense the same as grandma sending you $20 for your birthday
And SS too?
Except legally it is.
So suck it up and quit whining buttercup.
Gifts are gifts are gifts.
What is insufferable is the owners of restaurants going whining to the government about how boo-hoo they just can not afford to pay minimum wage and arguing that "tip are wages" when they clearly are not.
Wages are paid by employers. Customers are not employers. If you can not fire them you can not pay wages to them.
And somehow all sorts of fast food places manage to pay their employees minimum wage.
You don't want to give your waiter a tip then don't. There is no legal requirement for you to do so.
No one will hunt you done and sue you for not giving a tip.
I will believe it when i see it.
Congress doesn’t like it cut stuff. They say they do. But their actions say otherwise. And it’s really mostly the same Congress.
And they will audit you. And they will ask you to prove that you did not get that full amount in tips they calculate you should have.
Tax court is the only court you have to prove yourself innocent.
Don’t be a simpleton, Bucky. It’s income because Congress has so defined it. Simplistic analogies don’t change that. And I don’t whine because the mid-five figures the government steals from me every year so they can piss it away they just help themselves to out of my wages, so whining would do no good.
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