'No Tax On Tips' Reveals the Chasm Between
Left and Right
Townhall,
by
John F. Di Leo
Original Article
Posted By: Mercedes44,
6/21/2024 10:37:43 AM
President Trump has focused his 2024 campaign on a number of issues that one would expect, but he shook up the game this summer by issuing a new policy proposal: “No Tax On Tips.”
While his campaign hasn’t released the usual detailed policy papers on it yet, the president made it clear what he means: “restaurant workers, hospitality workers, and anybody else who gets tips.”
The Left responded immediately with what they see as the downside: by reducing federal taxes on tips, federal revenues would drop by a huge amount of money, or at least, by an amount of money that sounds huge.
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Reply 1 - Posted by:
WV.Hillbilly 6/21/2024 10:50:43 AM (No. 1741094)
Tips should be taxed. No matter how you want to spin it, they are income.
3 people like this.
Reply 2 - Posted by:
planetgeo 6/21/2024 10:59:38 AM (No. 1741101)
If he wants a giant win... How about no tax on Social Security?!!! (As in no SECOND tax on Social Security!)
19 people like this.
Reply 3 - Posted by:
DVC 6/21/2024 11:04:04 AM (No. 1741114)
The simple reality is that probably between 50% and 80% of tips are already not taxed because they are never reported. Just converting a de facto situation into a de jure situation. No real cost in lost revenue.
AOC stole the tip jar....is anyone stupid enough to imagine that she reported that as income on her taxes?
15 people like this.
Reply 4 - Posted by:
mc squared 6/21/2024 11:04:14 AM (No. 1741115)
Sounds like pandering. Proposing a flat tax would be ideal but it would never happen.
I know servers in the industry and they make more in tips than they are paid. I always try to tip in cash.
Here's a minimum wage chart by state:
https://www.paycor.com/resource-center/articles/minimum-wage-tipped-employees-by-state/
2 people like this.
Reply 5 - Posted by:
Quigley 6/21/2024 11:19:58 AM (No. 1741132)
I agree they are income and can see no analysis from an income tax concept perspective which would indicate they should be excluded.
But it’s a brilliant political strategy.
Why should college debtors get all the loot?
6 people like this.
Reply 6 - Posted by:
ThreeBadCats3 6/21/2024 11:41:26 AM (No. 1741150)
People who have never worked for tips in a service job have no idea. The trend now to add tip to bill seems to me, having worked through high school and college waiting on table, foolish. It pretty much removes the waiter’s incentive to be pleasant and efficient. Although most customers are basically nice, the occasional exception and waiter’s position as subservient make it a difficult job. Like grocery stores, restaurants work on a slim profit margin, and waiters receive usually only a tiny token salary for hours worked. It seems only right that a server earns compensation based on performance rather than a fixed percentage, and agree that this usually well earned pittance should not be taxed.
4 people like this.
Reply 7 - Posted by:
FrznTundra 6/21/2024 11:48:46 AM (No. 1741156)
The other day I posted a comment that reflected my disdain for Trump's new policy proposal for legalizing tax avoidance for tipped employee's. I'm not sure if this article changed my mind - or if it gave me even more reasons to ramp up my hate for the tax system. I've long been a critic of the mortgage interest deduction because it favors affluent home buyers, and people with lower credit worthiness who pay higher interest rates. I hate all the tax shenanigans that go on with everything "green". I guess if we're going game the system in perpetuity, what's the harm in adding one more protected class to an already corrupt system? I still hate all of it.
0 people like this.
Reply 8 - Posted by:
ARKfamily 6/21/2024 12:06:19 PM (No. 1741166)
So then why don't restaurants just pay a straight salary to employees? Forget about tips because as far as I am concerned, it is a gift to a waiter/waitress for their good service. Do government employees have to pay for all of the gifts bestowed on them? Income? That is the wage the restaurant pays. . .
2 people like this.
Reply 9 - Posted by:
ARKfamily 6/21/2024 1:02:06 PM (No. 1741209)
By the way #1, if it is income and not a gift, then a waiter or waitress would receive a tip every time they served a person and we know that doesn't happen.
1 person likes this.
Reply 10 - Posted by:
MickTurn 6/21/2024 1:05:44 PM (No. 1741213)
Leftists just want to STEAL taxpayer money, and anything that reduces that amount the Leftists go ballistic over.
1 person likes this.
Reply 11 - Posted by:
philsner 6/21/2024 1:34:59 PM (No. 1741231)
I reject the premise that the federal government is entitled to anyone's earnings. So any tax cut is a good thing. If you say "why them and not me?", you have already lost the argument.
2 people like this.
Reply 12 - Posted by:
DVC 6/21/2024 3:17:31 PM (No. 1741270)
Re #8, because they'd be out of business pretty quickly. All the folks who never worked these jobs have all the pat, simple answers.
The real answer is to get off the back of the restaurant businessmen, and of the folks working waitress and waiter jobs. I give CASH tips most of the time because the tips added to the bill are pooled and the obnoxious puke gets the same "tip" as the gracious, friendly and attentive waitress. I don't like that averaging out of the tips. I frequently will hand my tip directly to the waitress rather than leave it on the table for the bus boy to grab and maybe keep, or pool. I want the person who did a good job to know that I appreciate it. I frequently leave a $5 tip for a $4.50 meal at one restaurant where I often get a bowl of chili and a glass of water for dinner. The very nice waitress gets $5 bucks because I've known her for 15 years and she works VERY hard, and leaves the restaurant at 9:30 or 10 to go to her other job at the grocery store bakery. Widow with two kids, working her butt off and smiling and pleasant all the time.
Very happy give her a good tip, and I hope she doesn't report the cash and pay taxes on it.
4 people like this.
Reply 13 - Posted by:
mc squared 6/21/2024 3:40:22 PM (No. 1741286)
Sounds like poster 12 and I frequent the same places.
1 person likes this.
Reply 14 - Posted by:
LadyVet 6/22/2024 12:09:42 PM (No. 1741709)
I am in favor of not taxing cash tips just to cause the workers to revolt when the government tries to go digital so that they can better spy on the people.
0 people like this.
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