Dukasaur wrote:HitRed wrote:Is a gift income.
A question is usually terminated with a question mark.
Tips are "gratuities" in name only. In fact, they are bribes for services rendered. As the old saying goes, "TIPS = To Insure Prompt Service".mookiemcgee wrote:Dukasaur wrote:HitRed wrote:No taxes on tips. - Trump
Which is ridiculous. Income is income.
I'm quite willing to posit that income taxes are too high, but giving special exemptions to special groups is nonsense. Reductions should be the same for everyone.
This is a tough one for me, because back when cash was 60-80% of how meals were paid no one was reporting cash tips as income so in some ways in America it's a 'newer' tax, and it is an extremely regressive tax targeting the poorest workers given 99% of restaurants pay minimum wage with no health plan or other benefits. In many states there is a special lower minimum wage specifically for servers which is somehow legal because they are expected to be making tips (which is it's own weird loophole where they don't report their tips and make $2/hour and have a low enough declared income they qualify for foodstamps/free healthcare ect ect). That said even when cash tips weren't being reported it was a sort of 'don't ask don't tell' type of policy where the official gov't stance was that this was taxable income, and I think codifying it as a special category of 'gift' not 'income' you are suddenly going to start seeing mountains of abuse and tip lines on the bill for basically any bill you pay (which has already started to happen, but once you carve out a legal way around taxes people will start to abuse it.
Then theres the issue that tips don't always go to employees, I worked at a restaurant in Whistler 20+ years ago and the owner took 25% off all tip money.
So yeah idk, it will marginally help alot people who are struggling but keeping jobs so thats good, but it's probably going to be so poorly written into law that it's going to become exploited.
I mean, if you're working in a cheap diner you're probably struggling, but if you're working in a nice steakhouse you're bringing home $200 to $300 a night in tips, and if you're a bartender in a trendy dance hall you're probably pulling down $500 to $600.
Now that it's mostly plastic transactions, they are more and more having to be reported, but even 20 years ago they were still mostly cash and got "forgotten" on the tax form.saxitoxin wrote:Dukasaur wrote:HitRed wrote:No taxes on tips. - Trump
Which is ridiculous. Income is income.
I'm quite willing to posit that income taxes are too high, but giving special exemptions to special groups is nonsense. Reductions should be the same for everyone.
Debt is debt. Waiving certain types of debt (student loans) for special groups (the upper middle class) is nonsense.
I don't disagree. On the other hand, the (arguably) deliberate push to crank up the cost of tuition to the point where only the upper middle class can afford it has to be seen as a policy failure. Everyone knows a story of some old-timer who worked his way through college bussing tables at the local pizzeria. That can't happen any more -- a year's wage at a pizzeria wouldn't buy you one credit at a decent school nowadays.