Posted on 06/25/2024 3:03:23 PM PDT by conservative98
Republican Sen. Ted Cruz of Texas is not waiting until after the presidential election to launch a bid to put one of former President Donald Trump’s ideas into effect.
Cruz has introduced the No Tax on Tips Act that would keep the Internal Revenue Service from taking a slice of the income service workers gain through tips, according to a news release on Cruz’s website.
During a recent rally in Las Vegas, Trump indicated he opposes taxes on tips, according to The Hill.
“For those hotel workers and people that get tips, you’re going to be very happy. Because when I get to office, we are going to not charge taxes on tips,” Trump said.
“We’re not going to do it, and we’re going to do that right away, first thing in office, because it’s been a point of contention for years and years and years. And you do a great job of service, you take care of people and I think it’s going to be something that really is deserved,” he said.
Cruz said that the National Restaurant Association and other groups support his bill.
“American workers in dozens of industries depend on tipped wages to support themselves. Today, I am introducing pro-worker legislation, the No Tax on Tips Act, to ensure they get to keep all of those tips. This legislation is a common-sense pro-worker bill that will help families deal with the historic inflation caused by the Biden administration,” he said.
The bill is co-sponsored by Republican Sens. Steve Daines of Montana, Rick Scott of Florida and Kevin Cramer of North Dakota.
(Excerpt) Read more at westernjournal.com ...
I disagree. I ran a truck stop back when the waitresses kept their tips. As an employer I was able to pay them less per hour because of this advantage they had. Their tips were more than what their hourly check was. By double... Between the two some made 20k a year back when 20k was equal to about 60k now. They made GOOD money for the era and the employer was not hit so hard they could afford to hire them.
Better the service, more they made. Employee was happy, employer was happy, and the customer was happy. It worked...
A person working in a podunk town diner can get to keep every dime from the Federal Government and save them up and maybe not have to live 30-40 miles from their non fancy workplace and spending all that money on rent and the expenses found in fancy environments...
If they are fortunate to live in a no income tax state,then every dime they get is theirs and not the govts..
What an amazing move towards an elimination of all income taxes...
I agree. My point was that the estimates of lost tax receipts of nearly $20 billion a year appear to be wildly high. So, I don’t believe the ‘lost tax revenue’ estimates given in the article.
Up to a point, yes. But there is an optimum point (tax rate) where the tax revenue is maximized. When you decrease the tax rate below that point, tax revenues begin to drop.
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Tax revenues begin to drop..
....
When it reaches $0 to the FIB, that’s a good sign that tax revenues are right where they need to be for that part of Fedzilla Deep State..
Ted decides to codify stupid.
Trade/tariff cannot fund the current government.
Not even close.
Idiots.
“Won’t fly. From the AP:”
Of course not. It is dangling a plastic carrot in front of us ignorant donkeys pulling their cart for them.
“First off it will be the only job you can get where most of your income is tax free. Second the government will have to raise everyone else’s taxes to make up for it. It does not seem fair to me.”
They spend $8.3T a year. Surely they could find $250B spent on useless crap to get rid of? If I’m not mistaken, every year the Office of Management and Budget presents a large list of wasteful and fraudulent spending to Congress. And every year, Congress ignores it. How bout they start there?
What is your point. Of course the tip system is good. It stands for “To insure prompt service”. Therefore those who do a better job get a better reward. Nothing wrong with that. However it makes a difference what establishment they work for as well. Here you are admitting that you took advantage of that system for your own gain.
Well if you are the one working for minimum wage as a cashier at the local market then there is not benefit in it for you. Don’t you have to travel as well.
“Here you are admitting that you took advantage of that system for your own gain.”
It was a state wage law. The employee expected it and understood it as it was coded by law. Waitresses made less than minimum wage because they got to keep their tips. ALL of their tips. So even though they were legally only required to make less than minimum wage they made MUCH more than a minimum wage earner in the end. Most of it not taxed at all. They were only taxed for the hourly wages, which was another advantage because they were taxed less than a normal minimum wage earner.
Now let me share what we did... We wanted and NEEDED the very best in town working for us because of the massive traffic going through this truck stop. We had stolen all the business from both towns next to us. All the trucking companies were driving by the other towns and coming to us because of our prices. It was the hotspot along I-40 across the desert. I paid them full minimum wage plus letting them keep their tips. There is no law against paying them more if you like.
When we ran ads for waitress help we had physical confrontations in front of the restaurant between applicants trying to beat each other to get an application. We had to call law enforcement twice over that seven years because of literal knock down drag outs between gals. So no... Even though it was law and I could have saved a buck, I made more by paying them more anyhow... But it put them in a tax bracket they didn’t like. So some actually requested the lower state “tipped rate” instead of full minimum wage.
https://www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
The benefit is that as a cashier earning $20 mandated by govt minimum wage,you’re now seeing the folly of a $20 minimum wage for a job that now taxes your govt mandated wage and everything around you had gotten more expensive and yet you can’t stay ahead of it..
Maybe you start to ask hey, why does my govt mandated minimum wage get taxed and not tips?
Can I get paid in tips too?
Maybe this minimum wage mandated by govt isnt helping me at all.
It’d be better to wait tables...
Hey, that’s an idea.. maybe just part time to start..
I can make $20 an hour and more and keep all of it..
Screw this govt mandated minimum wage job.. let some kid do it..
It’s not and insulting giveaway, because their hourly wage is very low, less than minimum wage. Some places do not pay a wage at all but rather the wait persons have to pay to work there.
Then, some places demand the tipped workers pay the going rate for tipping to minimum wage based bus persons whether they bussed those tables or not.
You can’t write it off as a business expense either.
If you didn’t earn the going tax rate, you are taxed as thiugh you did. There are some groups of people who simply don’t tip, or tip at a very low rate. The elderly and church goers can me counted on to tip low or not at all. Business people generallý are generous.
Wait persons deserve relief.
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