Posted on 06/19/2024 10:47:07 AM PDT by karpov
Exactly. This is a gift to large employers of tipped employees (such as the Trumps), but patently unfair and of no general economic merit.
People can give a gift of up to $18,000 to anyone and it is considered a gift and not taxed. But if I give $20 to a waiter it is suddenly "income" because of their job?
So what? It’s no different than wealthy Americans earning income as capital gains to exploit the capital gains tax advantage.
The WSJ is transparently full of crap on this … and they destroyed their credibility with just one sentence.
Many states are eliminating the tipped income minimum wage differential.
The era of 15% to 20% typical tips is going to be replaced by $1 to $3 typical tips.
This will take time to happen as I personally can’t say which states have eliminated the differential, but once diners learn, they will typically tip differently.
I wonder how many on the WSJ board have ever worked for tips (as opposed to grift) in their lives.
Agreed.
WSJ. with their Gentry/Hedge Fund economics is such a joke.
For them, tax exempt tips is an unjustified tax carve-out, but “Carried Interest” is important support to job creators.
Trump knows the IRS is going bye bye. the no tax on tips is an easy promise to make. Soon there will be no income tax at all.
So what? We are taxed enough already.
WSJ = RINO Central
It may not be the best tax policy in a vacuum, but it makes a good play for the younger vote, as it is younger workers who tend to be tip earners.
We’ll need all the votes from all the demographics we can get.
What about small employers who employ the vast majority of Americans? Why is the Wall Street Journal playing class-warfare with taxes?
Why does the government get a piece of your gift because you chose to provide good service?
The government had nothing to do with you serving scrambled eggs hot with an extra cup of hot coffee without forgetting the condiments, milk and sugar.
They destroyed their credibility years ago.
Sorry, only Virginia and West Virginia have eliminated the differential according to this:
https://www.paycor.com/resource-center/articles/minimum-wage-tipped-employees-by-state/
Florida still has a differential:
“Florida $13.00 (eff. 9/30/24) $3.02 $9.98 (eff. 9/30/24)”
The differential is most states is either still substantial or almost completely retained.
The bigger question is why isn't the government satisfied with taxing your payroll income but has to get some of your tips as well?
Ask any reasonable person if the government spends your tax money wisely...I would expect everyone to answer in the negative.
That is enough proof that the government doesn't need a bite our of that tip you earned for giving your guest an extra dry martini or cooking that steak just right. The government had nothing to do with your conscientiousness or pride in your job.
Think of how screwed up that is, the government taxes you on your pride at doing your job correctly, effectively and with a smile.
Uh, no.
Even worse is the worthless guy that works with you gets a share of your tip. I don't know if that is voluntary or law but many businesses pool tips and divide them up at end of day.
Sure, but it saves the Trumps more than it saves Joe Small Town.
“Trump knows the IRS is going bye bye. the no tax on tips is an easy promise to make. Soon there will be no income tax at all.”
What a 200-year reprieve to pay your income taxes?
Wholly DACA-style, Batman!!!
Trump & his companies save nothing.
Unless he helps out at Mar-a-Lago.
DJT, this $10 is for your service and your legal expenses.
Let the playing field be level.
I gave the guy who did some work on the property a tip that was about one third of the bill I paid to the company. He did an excellent job. Much better than the last guy they sent out who did not get a tip.
It was a gift, not wages. The issue of wages was settled when I paid the bill.
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