Reagan took some hits for increasing reporting on tips in his first term. I like the idea of helping waiters/waitresses/bussers and also reducing reporting hassles for employers.
Eliminating the income tax for everyone is a better platform. I have experience waiting tables and did so for a number of years. It can be hard, often thankless work. Nevertheless, I’m not sure servers should specifically be singled out, among all other occupations, for income tax exemption.
The worker in the clothing store pays taxes and when she can afford it goes out to eat on a Friday night and is expected to tip the waitress who lives tax free?
For many years I’ve been advocating for no tax on tips and also no tax on overtime. When somebody goes above and beyond its not congress and their greedy lobbiests that should be rewarded.
I don’t think I like this idea because it would probably lead to far less tipping.
I think most of their income is from tipping and not from their salary.
Correctly or not, I think most waiters and waitresses only report part of their income from tips.
I’m open to correction since I’ve never worked as a waiter.
I also hope that he stops the IRS from going after, (I kid you not) office birthday cards. You know how they would pass around an envelope at the office when someone had a birthday? And your coworkers would throw in what every change they happened to have in their drawer and then the office manager would buy a ten dollar gift card, a t shirt with the company logo and there would be cake?
Ever wonder why that does not happen very much any more?
That would be because the IRS wants you to pay taxes on the shirt, gift card and anything that a coworker that might be higher on the ladder then you might have put into that envelope.
Some companies tried to get around this by giving out lottery tickets instead but the IRS soon put a stop to that as well.
Also if you work in a restaurant and you take home left over food that is also taxable. And your employer is going to get hit with paying their half of FICA and Medicare tax as well as deduction the tax for the value of the food.
Gosh aren't the democrats just wonderful going after the RICH with all these new rules?
bttt
I would love to see small employers hand their employees an agreed upon cash “tip” every pay day, for their whole remuneration, or at least part.
There’s a double edged sword to
this issue. Retirement SS is
based on the highest income
during a continuous 5 year
stretch. The more you make,
the higher your SS benifits.
It would have to be reported as
non-taxible income. I hope
there’s consideration for this
in any of the proposed
legislation.
You can debate the worth of the concept of making tips tax free, but the reality is the Biden administration got funding for, and is trying to hire a huge (yuge!) number of IRS agents to find more taxes. The big earners can afford accountants, they are already paying what they can get away with paying. All those extra people... they’re pouring through bank records and coming after waitresses and bartenders.
Just axe the hiring surge at the IRS. Turn off those privacy intruding policies, or better yet outlaw them under 4th amendment grounds. It’s easy enough to do if you got the right guy in charge.
Voluntary tips are a gift from a customer to a server who provided great service. As such, they should not be taxed.
Forced tipping negates all of that.
More selective social engineering with the tax code. How about a flat tax for all? Everyone would be treated equally and everyone would have skin in the game.
I like the idea of Trump cutting taxes everywhere. It bolsters the argument that we can’t afford all the alphabet agencies anymore, so they’ll need to be defunded, disbanded, do not replace. Two thirds of the federal work force fired? Oh well.
I mentioned this to several “wokeish” friends of mine (who work for a huge company out of Redmond, Washington) and they said they never heard of it and doubted Ogre Trump would do that.
They never saw it on CNN or MSNBC.
Anyway, I gave them a link from their company’s own search engine (lots of Left of center sources): https://www.bing.com/news/search?q=Trump+Discussed+The+Proposal+Of+Eliminating+Taxes+On+Servers%27+Tips&qpvt=Trump+discussed+the+proposal+of+eliminating+taxes+on+servers%27+tips&FORM=EWRE
They were then flabbergasted! “If Trump is serious,” said one not as political as most, “then he’ll win the election with this!”
Trump 2024! Make America Greater Again!
Why should I have to pay tax on my income while others don’t?
Voluntary tips are gifts. Forced tips are not, nor are wages.
Homeless people never pay tax for handouts.
Since servers and the like are already paid a wage, anything on top of that should be considered a gift.
It makes sense to me, even using today’s tax code approach. It has been wrong to tax gifts.
I caught a sound bite from a liberal media talking head, in response to the democrats “buying votes.” She said “the Republicans are doing the same thing with tax-cuts.”
Think about that for a moment...
Cool. I’ll open up a free tutoring service. Parents can just tip me.
I understand he also talked to the Congressional Republicans about returning to the intent of the original Constitution and supporting government with tariffs, doing away with Income Tax altogether. That would be great. But I suspect they would also have to reduce the size of government to make it work. And that sounds even greater.