Trump made a similar promise at his own rally in the city in June — though neither he nor Harris are likely to be able to fully do that without actions from Congress.
You think everyone one asking for a tip at the cashier is bad now?
Yeah, this will just make it even more prevalent for sure.
I think the proliferation of tips at almost every register instead of being limited to full service has been bad since the trend started.
In my state restaurants pay the federal tipped minimum of just over 2 dollars an hour. Their entire income is based on tips, and until they are required to be paid a living wage, tips are a necessary evil. I tip them well because I know they are getting screwed on their paychecks more than any other job.
Keep in mind that cash tips tend to not be taxed, which means less going into social security, medicare/medicaid, and other government services. It is still income! But when it was mostly cash it was effectively tax free.
Now that cards are prevalent it is getting taxed, and this 'no tax on tips' bullshit instead of requiring a living wage just benefits business. It is a counterproductive 'fix' and fuck tipping culture altogether.
You know what the worst outcome of non-taxed tips will be? The fucking wealthy tipping each other tax free to move money around. That is what it will end up being in a couple decades because that is consistent with every other similar 'fix' that just avoids requiring a living wage.
I'd rather not further cement tips as a fundamental part of our economic system. It's gotten so stupid to the point where you get asked for a tip before any service has even occurred and then the "service" is often just counter service which used to not be tipped. By not taxing this income, you're encouraging more income to be paid through tips to avoid taxes. When you're making all these little exemptions and special cases, maybe it's time to rethink the fundamental system so that it works better as a base case rather than having all these poorly-applied bandaids.
This will be the gateway to removing tipped minimum wage and eventually minimum wage. People often forget it is not just the employee that pays taxes on tips, but also the employer. This will also hurt an already struggling SSI system. I'd really like to see a detailed breakdown of a 10 year outlook on this plan.
That’s what they told us with Obama, and Clinton and look where we are. Fuck that. Either actually be a leftist or get out of the way for someone who will.
Maybe we should talk about the history behind taxing tips...and Social Security checks. Hint: it was Ronald Reagan and he raised them to pay for cutting taxes for the wealthy and corporations
It always comes back to Reagan. This is what happens when you elect an actor celebrity with fucking active dementia to office. He becomes a useful tool to enact policy that the general public does not benefit from because he can remember the lines and deliver it in a package that they are willing to swallow.
Most of them don't already. They just don't report cash tips on their taxes. This was a cheap way for Trump to gain votes, so Harris went along with it.
Looks like many haven't read the article before commenting. While both candidates have a proposal about the same topic, the methodology of implementing this seems to differ greatly.
The reaction in the comments appears to reflect more of the potential outcome of the Trump plan, though the Trump plan seems to mainly be some cobbled together bits of some other Republican proposals.
From the article, the Harris plan goes along with a minimum wage increase and an income cap so higher wage workers can't collect tax free "tips" in lieu of taxable income.
I also looked up some implications of elimination of taxed tips and found this article that goes into some numbers and shows how raising the standard deduction to make more workers, not just tipped workers, exempt from income tax and benefit many more people. I thought that was interesting and provided more seemingly useful info than either candidates' campaign promises.
The numbers didn't really look in line for today's incomes, and from what I can tell from this, tax brackets for anything but the highest earners haven't changed other than an inflation adjustment since the 80s.
It's just a title, it says what the article is about, but it can't say everything. But when everyone comments based on the title and not the article, we risk creating misinformation.
Trump and Harris can both say we should not tax tips, but if that's the end of the story from Trump, but it's part of a multi-pronged approach, that's what we need to be sharing and commenting on.
Everyone's points about tipped jobs being exploitative are correct, but that isn't what the article is about. If we just take it as Harris and Trump both want to do the same thing, that's a half truth, and that is what many of these comments perpetuate. Both sides or this are not the same, and it does a disservice to us all to treat it as such.
Having a more descriptive title can help, like if it said "Harris presents competing plan for removing tax on tips," but it is somewhat redundant as they wrote the entire rest of the article about it. I feel this is why we include the article with the post, and not just the title, no? 😉
I feel I'm sounding a bit harsh, which isn't my intent, but it irks me when I can go through a comment section and see just about everyone has missed the point.
This doesn’t sound like a good idea at all. If a person relies on tips for a livable wage, it should be taxed. If you work for tips, it’s taxable income.
This sounds like a reason for companies to rely even more on tipping to compensate their workers... How about instead we make the companies pay the taxes on worker income earned through tipping? Then we can finally do away this ludicrous system we're all pressured to abide by.
Wow I actually really like that idea. I don't think I would've ever come up with it myself. It'd be cool to have a candidate platform made up of the best crowdsourced policy ideas.
Wait... Why wouldn't tipped employees pay taxes on that part of their income? Or am I not understanding what they mean?
I worked for tip for over a decade and to me it's perfectly normal that I would pay taxes on my earnings, especially when I had colleagues that didn't work for tip with about the same total income and taxes would be taken from their paycheque automatically, why would I not pay taxes on half my income if they had to?
Not much of a gift anymore when everyone expects a minimum of -- what is it now -- 25%? The expected minimum percentage keeps increasing as people endlessly grandstand about the amount they pay because of how much workers depend on tips for their income. Then there's shame at play if you don't comply, with some thinking it's okay to mess with the food if one doesn't pay the expected minimum "gift". It's really just extortion at that point.
Is my birthday work that I accomplish in order to earn money?
I don't know how you can think that a gift is the same as remuneration. Meet the workers after their shift to give them a hundred if you want it to be a gift, but if you're giving it to them as compensation for the work they've accomplished while they're on duty then it's income.
Cool. Now let service workers get paid a living wage. Then set the minimum wage to a calculated value based on the rate of inflation and regional cost of living, instead of the idiotic fixed value system. $15/hr is at least 10 years too late.
Because employers use tips as a reason to pay workers less, even less than minimum wage. It's a tax on the lower working class. Meanwhile executives like Bezos pay almost zero taxes.
Big difference is she is likely serious. Im not sure how I feel. These are not the highest paid things but I hate encouraging tips over regular reliable pay.
those two things are not remotely comparable. obama said he would sign the freedom of choice act which never went to his desk:
"The bills were referred to the Judiciary Committees of the respective Houses. Neither bill received further action in the 108th Congress. The bills were reintroduced on April 19 2007 in the 110th Congress (H.R. 1964/S. 1173), but, like their predecessors, were referred to committee without further action. "
making mexico pay for united states infrastructure is something that could never happen unless we went to war with them. Its a blatant lie from the get go.
As far as taxing tips its about intent. Harris would do it the same as obama would sign the freedom of choice but she is not likely to put all resources to get congress to change the tax code in that way. so she gets a bill she can sign. trump on the other hand is just saying something he thinks people want to hear and would not sign a bill with it in there if it had lets say raised corporate taxes or such.
I'm thinking in the political game theory, it makes sense because it's going to force Republicans to either support it or oppose it, either of which will make them look silly as trump supporters.
The revenue losses would need to be made up in another way, which would ideally be closing loopholes and more dependably taxing the wealthy. That is assuming that the segment of revenue from tips is even substantial enough to matter.
Anyway it's going to force the Trump camp to respond. And pretty much every time you do that it provokes more unforced errors from them because they are clueless.
Just another note, Biden has also mentioned he would sign this into law. This would be even better for Dems than Kamala's promise. For an election cycle, it would basically delete any value of Trump's promise to tip earners.
I've seen "no tax on tips" on Trump billboards on my area. Clearly Trump thinks it's an important issue. Having made them waste money would be a hilarious win, also preventing undecided voters from turning out for Trump on this single-issue is a clear strategic design.
Good luck getting a car/home loan when your salary looks like minimum wage (as a former coworker who didn't claim her tips found out). The whole tipping thing is idiotic. Pay a loving wage to workers.
Edit: also a living wage. I can't type on mobile apparently
Why don't they just fix the minimum wage problems and stop allowing tipped jobs to have a lower minimum wage. Also stop letting million plus "charity" organizations employ disabled workers at $0.25. ( Goodwill is a scam)