Trump is proposing to make tips tax-free.
What would that mean for workers?
Associated Press News,
by
Kevin Frecking
&
Josh Boak
Original Article
Posted By: Mercedes44,
6/21/2024 11:06:25 AM
Former President Donald Trump’s new proposal to exclude tips from federal taxes is getting strong reviews from some Republican lawmakers, though major questions remain about the impact of the policy and how it would work.
What’s certain is that a change in the taxation of tips would affect millions. The U.S. Bureau of Labor Statistics estimates there are 2.24 million waiters and waitresses across the country, with tips making up a large percentage of their income.
A look at what Trump’s proposing and the possible political and economic ramifications:
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Reply 1 - Posted by:
padiva 6/21/2024 11:13:30 AM (No. 1741126)
I know the answer! I know the answer!
PDT is doing something to help working people rather than giving free stuff to non-working people and/or illegals.......that the working people are paying for.
30 people like this.
Hopefully they will invest a portion in a retirement fund as their Social Security payments will be greatly reduced. If they do they will be ahead.
8 people like this.
Reply 3 - Posted by:
john56 6/21/2024 11:50:25 AM (No. 1741157)
I'm not totally sure if I'm on board with this.
If you earn a similar amount via wages, you pay the tax but the guy getting tips doesn't. Also, the tip earner probably won't pay into Social Security and Medicare either, but my bet is that they will want those services at the appropriate time.
Now, I just didn't fall off the turnip truck and I know that there is some "flexibility" in reporting tips and other cash income, but maybe the best program would be something like this. The minimum income tax for any wage earner or other source of income (tips, dividends, interest, cap gains) is $400 per year (so everybody has some skin in the game). After then, there is a BIG area where no additional tax is due, so all earning let's say under $75,000 (not sure the number) only owe the $400. Then the income tax kicks in.
And if you want to soak the rich, then increase the SSN tax cap and perhaps make it payable on some capital gains (over a certain amount). Not sure on that one, but it may be needed to extend the life of SSN.
2 people like this.
He should also propose a tax on college endowments funds to recoup the billions FJB gave away in his unfair student loan forgiveness stunt.
15 people like this.
Reply 5 - Posted by:
MarkTwain 6/21/2024 12:25:50 PM (No. 1741186)
Tips? Baby steps. Abolish the 16th amendment and the income tax. Defund the IRS. Cut the federal government to the bone. Get government spending under control. Institute term limits for Congress. It's not much, but it's a good start.
11 people like this.
Reply 6 - Posted by:
downnout 6/21/2024 12:27:51 PM (No. 1741188)
This is a much more beneficial proposal than blanket forgiveness of student loans. The employees who would benefit are some of those whose taxes are being used to “forgive” those student loans. Tells you a lot about who is on the side of the working man, doesn’t it?
4 people like this.
Reply 7 - Posted by:
formerNYer 6/21/2024 12:44:40 PM (No. 1741200)
Of course the AP would have to find something wrong with any Trump proposal.
FTA:For example, some customers may respond to tax-free tips by reducing their gratuity. Secondly, it could take the steam out of efforts in some states to gradually increase the minimum wage for tipped workers so that their base pay is in line with the minimum wage for other workers.
The former reason is stupid the latter a good thing.
I wonder if the AssPress did this with bioden's open boder or with the rise of gas and energy? I know the answer.
3 people like this.
Reply 8 - Posted by:
Jerseyden 6/21/2024 12:57:29 PM (No. 1741204)
Tips should be considered gifts not earned income. If they are earned income then someone who didn't get one could have a discrimination suit for not being paid the same as the other person.
2 people like this.
Reply 9 - Posted by:
WV.Hillbilly 6/21/2024 1:07:19 PM (No. 1741216)
Tips should be taxed. No matter how you want to spin it, they are income
2 people like this.
Reply 10 - Posted by:
Robert Jones 6/21/2024 1:16:19 PM (No. 1741221)
It may be right to tax tips, but it is a nightmare trying to measure it. Trump is right once again! Much more fair than discharging debt for college.
The suggestion to elliminate the income tax is also a great idea. Before the income tax, people were more careful about how they spent their money. Why should businesses be allowed to deduct their expenses when one couldn't do it when there was no income tax. The little old lady that goes to Office Depot has to pay the full load, but a business can deduct its expense!
0 people like this.
Reply 11 - Posted by:
JHHolliday 6/21/2024 1:22:59 PM (No. 1741227)
I doubt most who receive tips report all they receive anyway. It's easy to forget what you got when you stuff a few bucks into your apron or pocket and easy to deliberately "forget" how much you got over the year. I am not disparaging wait staff. All four of my kids worked as waiters/waitresses at times. Not an easy job....rude and unpleasant customers, bussing heavy plates etc. The real problem is that our government is overspending in the trillions and it won't end well. It won't hurt the current crop...Pelosi, Schumer et al. They will be retired or dead when it all hits the fan.
1 person likes this.
Reply 12 - Posted by:
DVC 6/21/2024 1:23:06 PM (No. 1741228)
Just making it legal. Probably less than one third of tips are taxed because a lot are cash.
This is why I prefer to leave a cash tip rather than put it on the credit card. The card tip will be taxed.
I want the waitress to get the whole tip, not the government.
Do you think Sandy Cortez ever paid taxes on the tip jar she stole? Of course not.
5 people like this.
Reply 13 - Posted by:
snakeoil 6/21/2024 2:42:45 PM (No. 1741255)
Not to go off topic but I hate tips. To tip or not to tip? How much should the tip be? A person is being paid to perform a service. Why am I suppose to supplement their income. If a person's income is inadequate, raise it. Don't ask me to do it. When I see a doctor or dentist I am given a bill. I pay it. I don't think about a tip. Life is complicated enough.
1 person likes this.
Reply 14 - Posted by:
MickTurn 6/22/2024 11:02:40 AM (No. 1741673)
President Trump, while you're at it, Remove Taxes on Social Security Benefits.
The Govt. held all our money for many years and we got ZERO $ in interest.
Deleting Taxes on SS benefits would FIX THAT!!!!!!!!
1 person likes this.
Reply 15 - Posted by:
tearza 6/22/2024 11:11:47 AM (No. 1741678)
How about making people on Social Security Tax free after the age of 70?
0 people like this.
Reply 16 - Posted by:
LadyVet 6/22/2024 11:57:23 AM (No. 1741703)
I would raise that $400 number for Sch C net income before paying tax. It has been $400 forever, unadjusted for inflation.
And just to mess with the control freaks who want to do away with cash so that they can track our every purchase and punish us for buying things they don't like, example gasoline and ammo, I would say any tips paid with CASH, would not be taxable. Then when they try to do away with cash, there will be uprising among the youth and working class.
0 people like this.
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