Posted on 04/28/2017 2:53:45 PM PDT by davikkm
Megan, a server at a Tex-Mex restaurant in Missouri recently got this “tip” from someone who is not a fan of the individual income tax. Undoubtedly, a libertarian.
On the tip line, the customer put a big zero, in addition to: “Taxation is Theft.” To further clarify, the customer put some loose cash on top of the receipt with a note saying, “This is not a tip. This is a personal gift and not subject to federal or state income taxes.” The Reddit post was aptly titled, “The Libertarian way to leave a ‘tip.’”
Is this stupid anarchic libertarianism at its most extreme? Or is this a bold statement made by a man or woman with real principles they prefer to stand by? The world has weighed in as this post has over 1,700 comments arguing for or against the libertarian way to leave a tip. Surely, there is some stimulating dialogue in that thread.
(Excerpt) Read more at investmentwatchblog.com ...
I like the idea of a gift as the IRS limit for gifts is per giver and the gift is tax free to the recipient.
Taxation may be theft, but doing this is only going to hurt the reputation of libertarians. I doubt the server had any direct or indirect responsibility for the patron’s taxes. Was this Steve Buscemi by chance?
Clever. I like.
If the restaurant owner failed to report the money as tip income, the owner would be in trouble and the IRS would treat it as imputed income for the server even if no record was kept.
I admire the effort and the attempt to educate but our Federal government will not care that the transaction was intended as a gift if it is not declared as income.....
Unless it is a business meal, I always leave a tip in cash.
The note was intended for the individual server to indicate that she does not have to declare the money as a tip on her individual form 1040. It is a nice gesture but the IRS will not see it that way.
An auditor will expect to see estimated tip income on a tax return, if the waiter does not have a precise amount.
It is vulgar to tax either tips or overtime. When one goes beyond the minimum, the reward for their extra work should be theirs.
What is vulgar is the death monster in DC that takes over 60% of my income. We were far better off under kings.
Good point. But I agree with the premise of the article : is it a gift, not taxable; or a tip?
In the context, the IRS would consider the “gift” a legal fiction and tax the money as tip income, especially since the customer specified a tax-avoidance purpose. Now, if the customer were to write the server a personal check and send it in a card a week later, unconnected to an obvious business transaction, it might fly.
One of the funniest things I ever heard was a guy describing the local Ayn Rand society trying to divide the check at dinner.
I'm A-OK with this!
Me too. Note screen name.
I've always felt that way about a monetary award you get for doing a good job. And then, the govt takes half of that from you. Talk about theft!
Link?
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