Trump says he will stop IRS from taxing tips like they do now

With the use of credit cards wait staff can not hide their meager wages from the sticky fingers of some of the 87,000 new IRS agents... Trump says he is not gonna tax tips... I have known people who used to make a couple of hundred a day/night in tips.... good news for them if Trump survives to win the election. youtu.be...

People who get tips usually don't get paid very much.
So taking tax off tips would be helpful to them.
I think it's a good idea.

a reply to: 727Sky

Oh how this idea could be abused is endless. Not saying I have ever abused such a system to clean certain things, but the opportunity would be much easier to achieve with such a rule.
Screw the casino and hit your friends table to give that nice big tip to clean all the money.

Will he really tho

a reply to: 727Sky

Seems like an arbitrary move. Just change the tax rates for the lower tax bracket.

Pay is different for someone at a Waffle House vs someone at a high end restaurant or country club.

Personally I feel tax law should get simpler, not more complicated. It’s why the IRS employs so many people with tax code changing every year.

a reply to: 727Sky

Greedy bastards! While they send billions to Ukraine for their money laundering

originally posted by: CriticalStinker
Personally I feel tax law should get simpler, not more complicated.

When paying taxes is so difficult that most people can't figure out how to do it .. then something is wrong.

Trump isn't gonna stand up against the IRS.

Remember last time?

He took office and never mentioned going after the IRS again.

Besides making people live largely off tips should be illegal. Mainly only western countries practice this. One's labor should not be valued by how busy their employer is. Just pay people a fair wage and apply a flat tax the way it was intended to be before the IRS existed.

If you really wanna make America great again you got to go back before the IRS and income tax existed. This is just Trump throwing us table scraps again and you all are eating it up.

a reply to: FlyersFan

Agreed.

I think we just need to have flat taxes with progressive brackets. Lower the rates and get rid of all the convoluted rules.

Anytime we do something “creative” like specialized rules we see unintended consequences.

Removing taxes from tips just makes me think we’ll see a continuation of rampant tip culture.

I shouldn’t be asked for a tip when I walk around a store pick out what I want with zero help and check out at a register. I shouldn’t be asked for a tip when I call in a simple order to pick up (I do tip on large complicated ones).

TIPS is actually an acronym. It stands for To Ensure Prompt Service and used to be given ahead of time. I’ll still do it at a busy bar or restaurant so that I get better service.

originally posted by: CriticalStinker
I think we just need to have flat taxes with progressive brackets.

There ya' go!

Would wait staff really pay much tax anyways?
Up front they would but after filing they probably pay very little income tax because they are pretty low in the tax bracket.

Not that I believe they should have to wait until next year for their money.

They can't tax tips if you don't declare them
That's why I always tip cash

originally posted by: budzprime69
a reply to: 727Sky

Oh how this idea could be abused is endless. Not saying I have ever abused such a system to clean certain things, but the opportunity would be much easier to achieve with such a rule.
Screw the casino and hit your friends table to give that nice big tip to clean all the money.

Tips are really gifts. What are the limits 10K$ or is it 20K$ a year now?

originally posted by: JAY1980
Trump isn't gonna stand up against the IRS.

Remember last time?

He took office and never mentioned going after the IRS again.

Besides making people live largely off tips should be illegal. Mainly only western countries practice this. One's labor should not be valued by how busy their employer is. Just pay people a fair wage and apply a flat tax the way it was intended to be before the IRS existed.

If you really wanna make America great again you got to go back before the IRS and income tax existed. This is just Trump throwing us table scraps again and you all are eating it up.

History must be forgotten for you then. IRS wasn't started until Congress passed income tax laws about 90 years ago IIRC.

originally posted by: Justoneman

originally posted by: budzprime69
a reply to: 727Sky

Oh how this idea could be abused is endless. Not saying I have ever abused such a system to clean certain things, but the opportunity would be much easier to achieve with such a rule.
Screw the casino and hit your friends table to give that nice big tip to clean all the money.

Tips are really gifts. What are the limits 10K$ or is it 20K$ a year now?

Gifts are exempt if it’s a family member up to 18k per recipient in a year.

Tips are income though. That’s why restaurants can pay well below minimum wage. Also, if a worker doesn’t make enough tips to clear the minimum wage threshold, the employer has to pay the difference.

a reply to: Justoneman

Income tax stated for the incredibly wealthy. At the time it was viewed almost as “I’ve made it”.

Income tax was applied to the broad populace during WWII with implications it was for the war effort and never left.

I’d be all for scrapping income tax so long as we balanced the books by reducing spending and ensuring revenue for any future spending.

I’ve seen attractive alternatives like consumption tax. But I imagine it would be complicated with its pros and cons as well.

Even though I lean libertarian, I’m far more interested in reducing spending before we look at reducing taxes.

Too many people miss the fact that debt means interest as well. So while we take a temporary tax relief, it means we pay more in the long run either in increased tax or increased inflation.

True fiscal responsibility means taking care of obligations before reducing tax burden. Addressing taxes before is putting the cart before the horse and unloading the added cost on citizens.

Not to mention this often is a transfer of wealth. I pay a higher effective tax rate than many billionaires and corporations. So if their tax is reduced and we go into debt, the cost will go to the individual taxpayers who can’t utilize as many loopholes or simply raise our prices like a business. These corporations will still post record profits even in times of crisis, just like when they were bailed out during COVID. Which is part of inflation.

Sounds good and targeted to a deserving group, but as pointed out above pretty easy to scam. But do we really care if someone scams the .gov? It's not like they do such a fiscally [or any] responsible and good job at things, and every dollar helps fill a pothole. More like every dollar ends up in a politico's pocket. I say do it, and end the insane inheritance tax as well.

a reply to: FlyersFan

It should be income based just as everything else is. I know some bartenders and servers who make very little...I also know some who make 500-800$ a day. Also think about Vegas, most folks in the casinos can have some wildly fluctuating tips especially depending on the job. Some of those guys also make a grand or more a week on tips. That should be taxed the same as my income. I think some studying should be done to find a number that below which you get a full refund of the tax taken and over that number you get taxed on that income.

Edit: Or...what would make me happier...we get rid of income tax!

a reply to: 727Sky

Retired tax agent and former tax preparer here.


Not sure how he intends to determine what is income from tips, and what is (taxable) income from wages, or other sources.

Biggest problem (from the government's standpoint) with "cash only" transactions is the opportunity to under-report income; without some form of substantiated documentation, many people are tempted to cheat.

Those cheaters wind up costing the rest of honest folks more; in taxes, prices, regulations, etc..


What is to keep a dishonest employer from claiming the bulk of the business's income as "employee tips" and therefore not taxable (and therefore, most likely, not reportable)? And electronic payments would not be much of a hindrance either; Simply replace the "Tip" line on the tab with a pre-calculated "Service Fee", as a "convenience" to the customers, pocket the bulk, and report it all as tips.


Or demand "cash only", and report only enough "income" to the government to make it look like a legitimate business.

originally posted by: CriticalStinker
a reply to: FlyersFan

Anytime we do something “creative” like specialized rules we see unintended consequences.

I’ll disagree here. I think they’re quite ‘intended’ consequences.