Trump and Harris agree on “no tax on tips.” They’re both wrong.
Trump and Harris agree on “no tax on tips.” They’re both wrong.
”No tax on tips” looks less like a pro-worker tax credit and more like a big business tax cut.
Fuck tips. If you work, you should be getting a living wage, not hoping you score a $100 tip to scrape through the month. Tips are a wage subsidy for corporations.
Yup. This is slapping on a bandaid for a very select few. The real problem is wages and cost of living.
If you're not able to pay your employees a living wage, your company does not have a viable business model and you need to either change it to a viable model or shut down the business.
My gut says that not taxing "tips" is only going to embolden companies looking to move line item payouts, and force more people to work for minimum wage.
You'll see a massive wave of previously non-tip jobs turn into tipped jobs, which only benefits the employer.
Yep. We've already seen a massive push of POS that prompt you for a % based tip... Testing 20% as minimum in some cases. As tip fatigue sets in, more and more places are going to find that fewer and fewer people are tipping.
Frankly speaking, no job should be tip based.
I'll save you a click because the author can't seem to get to the point quickly enough:
"Tipped workers don’t need a tax cut. They need a raise."
Plus like, we need to be simplifying the tax code, not complicating it.
Here's my vision:
- Raise minimum wage. We want food and housing. This shit shouldn't be impossible to get
- Implement universal basic income. Again. WE WANT FOOD AND HOUSING, JESUS CHRIST
- Implement a wealth tax. Great hordes of wealth being untaxed while income is just reinforces generational poverty
- Eliminate income tax now that wealth tax is covering everything. It disproportionately punishes workers versus the ultra-wealthy who don't get paid in money. Meanwhile, who's getting taxed is just not using the money they got taxed to pay for... And say it with me, kids, food and housing
The first three are great, the fourth idea is insane. Why shouldn't people pay into their government? If you're poor, like the first $25k, fine let that be tax free, but why not keep the money in the government coffers and provide single payer healthcare, free college tuition, student debt forgiveness, municipal broadband? Our taxes are not high compared to other western nations.
All wealth is created by workers... Any wealth used for the good of all society is coming from the workers same as all profit does. No need to add the middleman... Just charge it all to the corporations... First our work pays for society, only what's left over after should be considered profit
I'm not saying don't tax me. I'm saying don't tax me based on income. Tax me based on accumulated worth. Its possible to be highly paid but to have started in such a back foot that you're still in the hole. Meanwhile folks like that are paying more into society than anyone else through sales tax because they need to do things like furnish homes they bought
Eliminate all taxes on individuals, charge the whole bill for a functioning society to the corporations (preferably at the same ratio as the corporations make profit, ie if a company makes 10% of all the profit that quarter they pay 10% of the bill)... We the people democratically decide what all is included in a functioning society
Yeah. Raise the fucking federal minimum wage. Mandate that it keep pace with inflation.
The pandemic showed us we need to revamp our unemployment safety net and this includes doing away with tipping.
In a series of social media posts, Trump accused Harris of stealing his idea, saying that “she sounds more like Trump than Trump, copying almost everything.”
In a functioning democracy, this would be a good thing if you agree with your opponent on something. Instead, he has to complain that only he is allowed to use popular ideas, like the weird little baby he is.
I believe in no apostrophes in tips. Also tipping should be banned and thus not need to be taxed.
I think people should be paid a living wage, and I should still be able to tip. Because it's fun.
More exception rules means more loop holes. Now I can get my employer to pay me in tips instead of a regular salary.
That would be called a bonus. Tips are from customers for services rendered.
Many, many restaurants now have mandatory tips right on the bill. They've already destroyed the concept, and this will just make it worse.
Define customer and define services rendered. I rendered 40 hours of services to my customer (aka my employer).
I'll take a bad policy to win a swing state and make sure we don't lose that Senate seat.
Guess they are both interested in winning Nevada and willing to let everyone else pay for it.
Funny they would say that, I've just restructured my remuneration package so that all of my pay now technically counts as tips.
Yay me!
Rich folks play these games all day long so I don't see the problem. All you guys need now is a superPAC to lobby to ensure that the loophole isn't closed.
People claim their tips? I just let the IRS assume that I was terrible at my job.
If tips are no longer taxed, I'm definitely tipping about 1/3 less. 15-20%? More like 10-13%.
Honestly the more rules they make the worse it gets. We can’t have a air quality protection without it turning into a gold rush for collecting and selling breathable air.
If the hand we're playing is such that we cannot feasibly raise the service minimum wage and abolish tipping, but we can exempt tips from taxation, I don't see any reason not to take that action.
But it seems theatrical. How much revenue does US actually take in from this type of income? I bet it doesn't even make an impact. May as well use it as a political tool with the side effect of helping some workers too.
Until we can figure out a better way to have society. I just don't see the downside.
I don't see any reason not to take that Action.
The reason is that the government is now subsidizing poverty wages and encouraging those business models instead of letting them crash and burn for a lack of willing wage slaves like they should.
That's another great point thanks
Because the rich are obviously going to use this as a loophole to give money to each other tax free, now that NFTs and Bitcoin have kinda tanked. They need a new way to legally pay for illicit goods, and tips are pretty good for that. Do these tips even need to be reported if they aren't taxed anyway? Just like gifts under $10k don't need to be reported.
That's an interesting angle for sure
The article explains that one obvious downside is it'll put downward pressure on base wages for these employees, with the justification that their take home pay will remain the same. And I expect that's exactly what would happen.
this may make harder for tipped workers to access credit, since they can claim they made way more tips than they actually did since is tax free, forcing banks to exclude tips as proof of income for mortgage applications and such
Probably one of the most overlooked issues, but it's not like we're going to be buying houses in the future, we'll just rent them from corporations
While we're at it, can we also require recommended tips be based on total food cost rather than post tax amount?
I would love to do away with tips on their entirety, but in the meantime, I'd also appreciate getting that ~2% back
I mean, just do it. There's no law that says you personally need to tip on the total.
I generally don't, but what's the point of recommended amounts if I have to pull out a calculator to subtract tax and then split?
Not a tipped worker here: are tips currently calculated as part of SS earned income? How will exempting tips from taxes affect future benefits for these workers?
Tips are just added to what you made so yeah, it counts wherever an hourly wage counts.
However the current system just gets people not to report tips, so realistically they're paying a lot less into SS anyway. It's basically just the government going "alright let's make that official instead of tax fraud"
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https://www.vox.com/policy/366680/no-tax-on-tips-trump-harris-subminimum-wage
I'm inclined towards a universal sales tax, and elimination of income tax. That cuts out loopholes for billionaires who run around buying property, buildings, and yachts - a 10 or 12% tax would fix that (of course, every solution provides its own set of problems) The other solution is having my employer "tip" me every two weeks.
Edit: Some very good points below, which I'd never considered.
Income tax can be set up as a progressive taxation system, but sales tax, even with an added luxury tax is inherently regressive because poor people spend more of their money as a proportion of their income.
Why are you for a regressive tax that will hit the poor much harder than the rich?
Devils advocate here. How do you incentivize doing a good job as a waitstaff without increasing costs without tips? If your pay is x and no tips, what else is there other than do a good job or else I’ll fire you?
How do you incentivize doing a good job
By paying them, same as any other job. Should every other job be 2.13 plus tips because your infernal client feels like obstreperous karens should decide if a person deserves food and shelter based on how thorough a job they do of kissing ass?
You are being disingenuous by suggesting all service is equal. There is a difference between exceptional customer service and mediocre. Don’t you think servers should be able to be rewarded for going above and beyond?
Obviously the business needs to pay a fair wage but tipping in the service industry allows exceptional service to be rewarded.