Tips are income and should be taxed.
I pay taxes on income. Most of the rest of us pay taxes income. Tips should be taxed.
Income tax paying voters should be pissed about this. I am.
Me too. I’m old enough to remember when Republicans opposed narrow tax breaks to favored constituencies. In fact, broadening, flattening, and lowering taxes was the whole point of the tax cut Trump signed.
If you work for a company, do you know that your employer only pays taxes on profit?
For example - Hypothetically you are an HVAC guy. You have a customer who purchased a new AC, you installed and delivered it. Your customer paid your company $20k. Your employer deducts the cost of the product, shipping, mileage, insurance, all employee costs, facility etc. They then may pay taxes on say 2k in profit. The customer already paid taxes on their money so now the government gets to re-tax on 2k of profit.
However for tips from a person to a person, there is very little deduction. So you collect $4k in cash tips, which is already likely been taxed on the customer side, and now the cash is re-taxed again, almost in it’s entirety. It’s horrible from an overall tax perspective because it is just one example of how broken our taxation system is.
“Income tax paying voters should be pissed about this. I am.”
I wouldnt say I’m pissed but Trump is playing the same game Democrats play, giveaways in exchange for votes. It’s BS.
Lower taxes for all to unleash the economy should be the mantra.