Senate unexpectedly passes the No Tax on Tips Act in a unanimous vote
Will this cause people to tip less?
Will that then cause wages to go up?
I am not predicting anything, but it is a good start.
I do eat out a lot. And I see how hard bartenders and wait staff work.
No, I won’t be tipping any less than I do now.
I think it ends any chance of doing away with tipping.
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No. This will not meaningfully affect consumer behavior, minus a handful of judgmental people.
This is window dressing next to the colossal excuse for a failure of a budget they’re pushing through.
The reverse. Employees will want to be paid more on tips than a guaranteed wage without tips. If you had that choice with no taxes on tips, which one would you go for?
This is a dumb idea.
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Most people I know who had a job with tips never reported cash tips anyway, only if a tip was on a credit card where it could be traced back to them.
Wow, litany of opinions on this.
I agree with Brobbs that it is just window dressing and will have zero effect on the budget.
It had to hurt the Democrats to unanimously vote for a Trump idea though.
Harris also supported it during the campaign.
When I read cash tips I thought the same thing, but the IRS definition of “cash tip” is
The Internal Revenue Code requires employees to report (all cash tips received except for the tips from any month that do not total at least $20) to their employer in a written statement. Cash tips include tips received from customers, charged tips (for example, credit and debit card charges) distributed to the employee by his or her employer, and tips received from other employees under any tip-sharing arrangement.:
So I guess nothing will change except that the tip amount will be applied to the $160,000 maximum income to qualify for the $25,000 deduction. So I guess that means that little will change - I guess they still have to report tips and put it on their tax return and then take the tip deduction to determine their taxable income.
While I don’t like tipping, I don’t agree with not taxing tips. If a person works their ass off all day on a job that pays $30 per hour with no tips, they have to pay tax on $240, but a person waiting tables for $2.13 per hour but gets $250 in tips that day pays tax on $17.04.
The cited article doesn’t explain the nuances of the bill. The no tax applies to tips reported to the employer, which can then be reduced by up to $25K.
There is a limit though. I think it was 25k. It’s in the article. So not all of it would be tax free
Her only good ideas were copying Trump
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So why is not taxing tips a good idea?
The only good idea about this provision and a couple of other provisions in the bill is that they expire at the end of 2028. Much of this bill is the opposite of tax simplification and sound fiscal thinking, setting up parts of incomes that are taxed or not taxed, reinstituting phase outs of some deductions or non-taxation of some types of income, and reduces tax revenues by far less than spending and thereby adding to the federal debt.
It isn’t a set salary, it is basically a gift from the customer.
I don’t think you seriously believe that.
What does that have to do with whether it should be taxable income?
If it’s a gift, why is there a tipped minimum wage substantially lower than the minimum for everyone else?
All taxation of wages is authoritarian bullshit. Thinly disguised theft.
The government can get its revenue from capital gains taxes, sales taxes, etc.
We shouldn’t even be having this debate on whether low blue-collar wages ought to be subject to government theft.
So…when a group from an office goes to a restaurant for lunch and spends an hour there, they’ve been working just as hard as the waiter or waitress. but at the end of the day, each employee was “paid” $250 for their days work and is taxed accordingly, while the waitress, who make $300 in tips is taxed on less than $20. Still trying to figure out the good parts of this. Hell, the person who left the tip was taxed on the money they left .
It isn’t. Servers make minimum wage in Oregon