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Good. Taxing tips is bullshit. Even 45 can be accidentally right once in a while. Do Tax on Wall Street Speculation instead.
Why is it bullshit? Just because your income comes from clients instead of your boss doesn't mean it's not income.
Hell, the US became the US because of the "no taxation without representation" thing, should people who work for tip not be eligible to vote?
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.
So why choose the wrong solution then? Tax billionaires fairly. Don't arbitrarily make the waiter not pay taxes but the cook in the back has to? That's not equal, that's not fair.
I think tips in general are bullshit and the real answer is to raise minimum wage much higher, so it keeps up with worker productivity. I would prefer that, and to do away with tipping culture entirely. However, passing a tax relief thing is always much easier goal in the US than raising minimum wage, so I'm not letting an ideal internet reply guy solution get in the way of something that actually helps workers. As for it not being fair to the cooks in the back, different jobs pay differently. And believe it or not, some wait staff do share tips with the cooks.
Ok but you said so yourself, it's work being paid, it's earnings, are you saying people shouldn't pay taxes on their earnings?
They will still pay income taxes, just not on the tips portion. This is not at all different than the tiered taxes we already have.
It is different though... At the moment they're paying on all their income based on tax brackets, with the current they'll only pay on the regular salary part.
I worked for tip for over a decade, it would have meant not paying taxes on about half my earnings, with tax brackets that would have meant (where I'm at) 3500$ in taxes instead of 13000$ because two thirds of the first half would have been under the minimum taxable amount.
Tips aren't a gift, it's salary that comes from customers in exchange for services. You're creating two classes of lower income citizens if you say that some people don't have to pay taxes on what might be the majority of their income while the rest pays taxes on all their income.
It's a bad solution.
Nah, you just don't understand or appreciate the economics of our tax system at all. It's OK for people who make less to pay less in taxes or even no taxes. We have a so-called progressive tax for this very reason. Those who make millions and pay no taxes are the real problem with our system in the US. They find all of the loopholes and pay almost zero taxes, while people who are barely scraping by pay punitive tax percentages relative to their take home pay. The bad solution is wanting to fully tax people who can't afford housing or healthcare while letting the billionaires skate. Trying to frame it as "their fair share" is absolutely laughable. The lack of concern for the billionaires not paying taxes here is very telling.
What? I think you're the one who can't appreciate how taxation works (hell, I work in that field).
Someone making 50k/year in salary should pay the same amount of taxes as someone making 20k in salary and 30k in tip.
What you're arguing for is for that second person to pay taxes on 20k only and to get the rest tax free, meaning they would end up with more in their pockets than the first person even though their total income is the same, that makes no fucking sense and only incentivize tip work in order to maximize people's net earnings.
If you're tired of being asked for tip everywhere then you haven't seen anything if tip is tax free.
I would be thrilled if Harris announced taxes on Wall Street shenanigans.
But I highly doubt it