For those working service jobs, the majority who get tips aren’t going to be people who make a lot of money. Some do, but, people who make tips average $8.94 to $28.89 including those tips (those making $8.94 an hour really need to up their service game). So, not taxing the tips is good, right?
Democrats certainly wouldn’t want to say that removing taxes from tips is bad, right? Oh, well
AOC Exposes Catch in “No Tax on Tips” Rule in Trump’s Budget
The no tax on tips provision of Donald Trump’s budget cannot be the pro-labor gift that the president has made it out to be while the rest of the bill slashes health care and other social programs for lower-income people. Representative Alexandria Ocasio-Cortez shed some light as to why that’s the case.
“On this point of tax on tips, as one of the only people in this body who has lived off of tips, I wanna tell you a little bit about the scam of that text, a little bit of the fine print there,” she said on Wednesday. “The cap on that is $25,000—while you’re jacking up taxes on people who make less than $50,00 across the United States while taking away their SNAP, while taking away their Medicaid, while kicking them off of the ACA and their health care extensions.
“So if you’re at home and you’re living off tips, you do the math. Is that worth it to you? Losing all your health care? Not able to feed your babies? Not being able to put a diaper on their bottom, in exchange for what? This bill is a deal with the devil. It explodes our national debt, it militarizes our entire economy, and it strips away health care and basic dignity of the American people for what? To give Elon Musk a tax break and billionaires the greedy taking of our nation? We cannot stand for it, and we will not support it. You should be ashamed.”
It’s no surprise that this “woman of the people” is having a meltdown. Of course, she doesn’t worry about any of that, because she has gotten rich off of being in Congress, and rarely interacts with anyone but her rich and powerful Comrades. Peasants can pound sand. (there’s a longer discussion on funding being the same, not cut, just the rate of increase being cut, and working to reduce the graft, fraud, and abuse in spending of that money so more gets to the recipients)
‘No tax on tips’ sounds great until you explore the history—as many will soon discover
A few weeks ago Charles Rangel, the Lion of Lenox Avenue, was carried into St. Patrick’s Cathedral in New York City with a full military guard. Rangel, a longtime U.S. congressman from Harlem, was the chair of the Ways and Means Committtee in the House of Representatives, the committee with authority over taxes, tariffs, and benefits; many consider it to be the most important committee in the House. Until the election of Barack Obama, Rangel was arguably the most powerful African-American politician in the history of the United States.
Um, OK? What does this have to do with taxes on tips?
Taxes have been the government’s most effective tool to create the society we prefer. In the middle of the 20th century, the richest people in the United States paid back more than 90% of their income to the government every year, and that was redistributed in ways that built a large and strong middle class. Since the 1980s, taxes on the rich have declined dramatically. The chasm between rich and poor and the consequent collapse of social trust in American society seem to have followed almost automatically from changes in tax rates.
Right, right. Moonbat World.
Watch out. This is not the tax reform you’re looking for. Just like tariffs, untaxed tips are an invitation to fraud. With tariffs, it’s fraud against the government (all of us) when importers buy off inspectors and underpay customs duties. With tips, it’s your bosses defrauding you personally. Tip-skimming. Violating the rules of the tip-credit (not topping you off, as required by law, when your tips don’t bring your $2.13/hour subminimum tipped wage up to the $7.50 normal minimum wage). Putting non-tipped workers in the tipping pool and underpaying them. Tax-free tips are a weak substitute for an end to the $2.13 subminimum hourly wage and a full minimum wage (or more, much more) plus tips. State by state, legislative reforms banning subminimum tipped wages have decreased poverty and harassment wherever they pass.
How dare Congress create a situation like this, where people are hiding their money from government! This never happened before…oh, wait, they’ve always attempted to hide tips from government. A lot harder to do when it is mostly not cash anymore, right? Forbes is really trying to dig in and manufacture a crime against Government due to Trump Derangement Syndrome. Democrats are not happy about this no tax on tips, because they want to tax everything.
What about workers?
(WTKR) Congress has passed President Donald Trump’s Big Beautiful Bill, which includes a tax break on tips. Outer Banks restaurants weighed in on what it will mean for their workers.
“I’ll be able to do a little bit more with my money. I might stash a little bit more away for having to pay for college or groceries, and just like helping out around with my parents and whatnot,” said Owen Reibel, a server at Dirty Dick’s Crab House in Nags Head.
I love that restaurant, always go there when I am in Nags Head.
Dirty Dick’s Crab House general manager Rob Barker shared his thoughts on it.
“The first thing that pops in my mind is the average mom who is a waitress who now is going to have a little bit more money in her pocket,” said Barker.
Barker and Hurricane Mo’s, owner and general manager, Arthur Richer, feels it will be a boost for their employees.
“It means a lot to my employees, clearly. I care a lot about them. So, I mean, if they’re happier, I’m happier,” said Richer.
Obviously, this is all a bad thing, right, Democrats?
(Fox5Vegas) It’s now up to agencies like the Internal Revenue Service to practically implement the bill language, according to Certified Public Accountant Kim Walker.
“I feel that it is a game changer for the average tip earner. Our average citizens who are tip earners are pretty much going to be under that $25,000 limit for the year. A large percentage of their taxable income now overnight becomes non-taxable. Especially for single mothers or families with some children, that difference could be really a benefit for them,” Walker said.
The limit on no tax is up to $25000 in tip earnings. Sounds like a good deal. Not to Democrats. They’re crazy.
Is opposing and demonizing not tax on tips really the hill you want to die on Democrats?
Read: BBB Gives Not Taxes On Tips: Who Could Complain About That? »
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