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

a reply to: RickyD

Now that could work. Instead we tax things we use in a "user fee" based system. If I don't need to send a child to school, no user fees for that might be in play. We will have to accept that some of the user fees are going to be for roads. This might be confusing to people who don't think they need them in their situation. It would make more sense when instead there is some portion of say food charges that have a fee for the transportation on public roads. People who don't use the roads will still be a benefactor of other people using them to bring goods to their area for instance and some arrangement for fairness to the automobile taxes.

But taxing my efforts to make a living and take home pay should end IMO for a user fee based system.

a reply to: 727Sky

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.

No one's going to be able to hide anything when we're switched over to a biometric based digital ID/currency system.

a reply to: Justoneman

Its an issue of being an unapportioned tax and the fact you end up double and triple taxed on top of that. It starts with income, but then you are taxed again on basically everything you buy with that income through sales tax. In some cases you may end up paying other taxes on top of that. This would have never been allowed by those who designed our government and founded this country.

a reply to: Mantiss2021

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.

Already been done - celebrity chef Mario Batali (and general dirt bag) and his partner at ritzy New York eateries would skim off 5 % of the credit card tips and use it to pay for glass breakage and the wine stewards

Got caught and forced to pay up 5 million dollars in compensation to current and former employees

a reply to: YouCanCallMeAl

doing job at bank when young woman came in one morning and pulled out wad of bills 6 inches tall, mostly ones with few fives thrown in for the tellers to change .........

This would be a handout for the hospitality industry, the restaurants, hotels, resorts and clubs, and so on.

Instead of requiring businesses to pay people a living wage, which would require some to increase the current hourly wages -- let's make tips un-taxable. So in the short term, the workers get a bit more money, the owners don't have to pay anything more and they keep all their profits, and the community at large suffers due to lower taxes taken in. So they'll have to be replaced elsewhere.

Basically it substitutes what the owners should be putting in, and makes the public make up for it with taxes. We all pay for what they should be paying their own workers. And they get to buy another yacht.

But this is really good if you're in the hospitality industry and are the owner.

Watch millionaires and billionaires take advantage of this.

Here's a $2 million dollar untaxed tip for passing that bill through legislation.