Posted on 01/31/2025 2:46:13 PM PST by Libloather
Countries like the USA and Canada could cut income taxes and make up the difference with tariffs.
Exactly Congress just do it.
These promises are the reason the GOP controls Congress. A lot of people who never would of voted GOP voted for the GOP this time They must not fumble another chance at being the dominate US political party by letting the usual GOP_E types squish out again
Reducing or eliminating the tax on Social Security may be the easy one. With tips, it becomes income that isn’t reported to the IRS. I am not sure how they would implement no tax on OT.
Yes, Congress should make it law. But Trump can order the IRS not to tax tips, and the DOJ not to enforce any so-called “tip tax evasion” in the meantime. Unfortunately many employers will still issue 1099s or W2s which is why it needs to be law.
State taxes are another matter. People are going to have to rally for that.
AFTER he cleans house and AFTER his people are approved. We are not a month in yet
No tax on OT would be fairly simple, except that employers would need a software update (for the most part). Shouldn’t be too hard to patch.
, except that employers would need a software update
Nowadays that’s usually SaaS (Software As A Service), in the Cloud, so the third-party applies the patch across the board for all the customers.
Simple solution is to ban the cutout for tipped employees to be paid well under minimum wage.
OK, but would that OT income count toward the AMT, be involved with the capital gains thresholds, or IRMAA for Medicare recipients?
No clue. We’ll have to see how the bill comes, if it comes.
I can see some ways to scam the system with no tax on OT so maybe it will take more time than no tax on tips.
That is why I am a member of the Constitution Party.
My guess is that tips would be handled like non-taxable combat pay which is not included in taxable income but including it for child tax credit and earned income credit is optional.
When Congress writes the new tax code.
No tax on OT sounds like a bad idea.
It’s the kind of promise politicians make without thinking.
What about people who work on salary?
What about people who work multiple jobs?
MANY states require a % of the bi.ll to be reported as TIPS...WHETHER tips happened or not. NOT fair to employee.
When on a Cred card-—easy to track.
Yes end INCOME tax on tips. But DO NOT END PAYROLL TAXES (i.e., FICA taxes) on tips. To do that would have a devastating ADVERSE impact on the tipped employees’ Social Security benefits down the road.
And Trump wants to make overtime tax free.
Possibly they could simply exempt in cash tips.
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