Just raise the tax bracket ceilings for the lowest brackets. Takes away the tax on tips and on other workers who aren’t tipped. Don’t make it harder to remove this backwards and barbaric process from our culture.
The problem is that cash tips are one of the most common tax frauds. There’s not really a good way to verify, nor a good way to even track, nor is each instance of fraud big enough to spend on enforcement. Instead of just punishing the few honest people who keep detailed enough records, let’s just let it go
Fuck that, either get rid of it or tax it, don’t add more reason to keep the shitty practice around.
How about banning tips and forcing employers to pay the people working for them instead of the customers?
SC: “OMG they want to make post-transactional bribes tax free. They’re doing our work for us LOL!”
Financial planners next week: Instead of bequeathing or gifting your kids money, just tip them $300 million, tax free.
I’m not against the policy, but implementation details are everything.
Funny you mention that. Under present rules, very scant few tips would surpass annual gift exclusion levels, so couldn’t just about every service employee ever claim their tips were merely gifts?
Under the same premise, servers could set up a GoFundMe and have customers contribute to it via tablet that the server carries as those are also currently deemed nontaxable gifts. This would provide an extra level of separation from the restaurant books for better defense against the IRS.
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How about we raise the minimum wage instead?
Tipping is culturally enforced abdication of responsibilities toward workers.
Outlawing tips? Changing the tipping culture overnight? Updating the tax code seems easier/faster.
Outlawing tips?
I said nothing of the sort
Changing the tipping culture overnight?
Neither did I say this.
Updating the tax code seems easier/faster.
Sounds like an excellent conversation for you to have with whomever said those things. Which, let me remind you, is not me.
Sorry, no can do.
How about we raise the minimum wage instead?
Good one.
Isn’t Harris talking about raising the minimum wage as part of her campaign?
Is she? I must have missed it.
I’ve read that she actually brought it up in this very rally at Las Vegas - alongside the tax-free tips. I haven’t seen this rally though so can’t substantiate. She’s talked about raising the minimum wage to $15 before however[1] and I swear I’ve heard her mentioning making the minimum wage a livable wage in either one or her rallies or her speech to the UAW.
She doesn’t really have an official policy yet. Not surprising given the number of issues she needs positions on and how quickly this campaign needed to spin up. She basically went straight into campaign events. Presumably she’ll have a platform by the DNC
Actually one of the policies she’s running on…
Since increasing the minimum wage ever again is permanently dead and everyone knows it, she can’t lie and say she’ll raise it. Democrats have no credibility on wage increases anymore.
Now I wonder which senator is going to rotate in to gleefully block this as cover for the rest of them.
Every year Ted Kennedy brought minimum wage increase to the Senate floor. It was always a fight he relished. Most times he would lose, but sometimes he’d win. At which point, the next year he brought it back to the floor again. But, Teddy is dead.
Biden, for his part, increased the minimum wage of government workers by executive order. A rising tide and all that. It worked somewhat.
Some states have minimum wage laws higher than the Feds, but they are being attacked by republican legislators.
Harris is using it as a keystone to her policy position. If she has the Congress,I’m sure she’ll do it.
So a bartender making $5/hr wage plus $15 an hour in tips will be week be taxed on 1/4 of their income, while a factory worker making $15/hr will have all of their income taxed?
Sounds inequitable.
Agreed. We should pay a livable minimum wage so that tipping becomes irrelevant.
Yea, and many people I know making tips average 30+ an hour.
Those people already aren’t paying taxes on tips. When I waitressed, I reported all of my tips and ended up owing so much at tax season. When I complained, everyone asked me why I was reporting my tips.
Nowadays, a lot of taxes are being paid on tips because they happen on the payment terminals.
If you get audited on those and didn’t pay them it’s a slam dunk win for the IRS.
So a change like this could be somewhat substantial now.
Could be. I worked at a diner with a credit card minimum, so lots of cash.
That seems like a bad policy.
Lemmy is so sour on this idea, presumably because it was Trump’s first.
It seems fine? Like others said, its hard to enforce anyway.
I’m against it not because Trump was first but because it further incentivizes people to not make wages and rely on tips. Employers should pay a living wage and not subsidize employment via tips.
And trump sat in a pool of McDonald fish sandwich leakage.
Ill be honest most tips aint being reported for taxes anyway.
This is real af. I managed 3 chain restaurants and never checked nor cared. Hourly for servers was $2.15 at the time. Probably the same now. Fuck the restaurant industry. Especially chain restaurants. Their food is basically poison, it’s all Sysco crap food (even the “upscale” restaurants. Spoiler alert.
How about we go back to the Eisenhower tax model:
90% tax on income over 4 million a year
And the capital gains tax before the Clinton era:
I think it was something like 50% after a certain amount.
Then we raise minimum wage to what it should be if it kept up with inflation:
$28/hour
Tax the fucking rich
Annual Wealth Tax 1% on total assets over 10M, additional 1% over 100M, additional 1% over 1B, etc etc. Raises along with inflation or something.
As well as exponentially increasing taxes on private property. Owning more homes that you can occupy at a time should be prohibitively expensive and all the money collected via taxation of property should go towards housing those in need.
If agree with additional X% tax under that formula.
50% on assets over 1 Billion.
I would also like to see the end of taxing Social security income.
Comments about all the ways we can do better aside (cause I agree with them), it’s pretty smart to take away this “populist”* issue from the big orange shitbag.
How about we ban tipping and force companies to pay a liveable wage. If the only way you can survive as a company is to pay slave wages then you don’t deserve to exist as a company.
Eliminate taxes on tips and eliminate the tipped minimum wage.
Although I absolutely think we’ve gone overboard on tipping, I genuinely think tipping shouldn’t be completely banned. Rather, ban expected tipping.
For instance, last time my wife and I were in London, we, as a clueless American couple, visited a tavern during their busiest period after work. We left a few pounds above and beyond the bill because it was clear they went above and beyond to serve us promptly and excellently despite the fact that they were literally overflowing with patrons. That’s how tipping should work.
Tipping as a form of posted wages should be banned. If you want to give someone money for their service is fine. I have zero problems with that. Using it as a business model is not.
Well said. We’re on the same page, and I totally agree.
Get rid of the tipped minimum wage. Everybody makes the same minimum wage (at this point, the federal wage should probably be around $23/hr), and if people want to tip for excellent service they can without feeling pressured to.
