I am generally for lower taxes but I do not favor the no tax on tips proposal. It is a great political strategy but why should tips be tax free while everyone gets taxed on their income? Everyone has to have skin in the game if there is every going to be change.
< facepalm > Repeat after me: taxcuts are always a good thing. < /facepalm >
You think we should pay taxes on Christmas presents?
In the US the idea that they will earn tips is the basis for paying wait staff so little.
In other countries, where tipping isn’t generally expected, they earn much better salaries.
It’s a moot point really because I doubt Congress will vote for a plan like that. Based on their history, they’ll limit the percentage of tips that will be tax free just like they did for Social Security. Those greedy MF-ers will try to hang onto as much of our money as possible.
Trump MUST be elected this time, no matter what it takes. That is priority #1, and nothing supersedes it. If Kamala, or whoever ends up being the dems’ final candidate, wins, this country is over. I think Trump realizes that there are far too many freakin’ morons who vote now, and that the dems manipulate them by telling them what they want to hear. He’s apparently decided that our side has to do at least a little of the same thing, and I agree. Unfortunately, trying to stay “above it all” and engaging in soliloquies about supply side economics will just get us a great big “L” and a seat on the sidelines with a view to the final destruction of America. The dimwits are now a large enough bloc that they can sway elections, so we have no choice but to pander to them. Afterward, we can just forget the promises we made to them, just as the dems do.
I have zero respect for the swarms of idiots we have in this country now, and therefore no reservations about manipulating them in any way possible to obtain the power necessary to try to turn the country around. The Left made them this way, so I say use the Left’s pawns against them.
The legal rationale is that a gratuity (tip) is a gift, and should be subject to the $18,000 annual gift tax exclusion.
Tips are not a given. Some people don’t leave them. The actual pay is very low and tips many times don’t even bring it up to average in some service/tip jobs.
I worked as a server while putting myself through college and raising 3 kids. Back then, we didn’t have to claim tips. The idea being, your $2 you leave as a tip, that’s in your pocket, was already taxed. My paycheck (if you can call it that) was about $30 a week after taxes, minimum wage was $1.32 an hour for servers. No one can live off that. Then the government stuck their hand out and said “we want your money”. We had to claim 8% of from the amount of our sales. 8% 0f $100 is $8. We were lucky to make $5 per $100.
Tips = To Insure Prompt Service
Tips are voluntary. Have skin in the game? I worked 50-60 hours a week, no vacations, no health benefits, nothing. Have you ever once in your life waited on tables? Everyone should do it once.
The reason why it is a great idea to not tax tips is because the restaurant and hospitality industry is really getting hammered on all fronts - especially inflation.
Eliminating the tax on tips will help float an entire industry, not just help individuals.