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re: Senate passes no tax on tips 99-0

Posted on 5/20/25 at 9:58 pm to
Posted by DaBeerz
Member since Sep 2004
18304 posts
Posted on 5/20/25 at 9:58 pm to
So now we can tip less and not feel bad about it

I need to take a major pay cut; get a side gig waiting tables once a month, and have my boss tip me most of my salary at dinner. How are they going to track all this?
This post was edited on 5/20/25 at 10:03 pm
Posted by Arkaea79
Member since Sep 2022
976 posts
Posted on 5/20/25 at 11:10 pm to
Does this mean onlyfans hoes now don't pay taxes? Isn't their entire hoe-dom funded by cuck tips?
Posted by Neutral Underground
Member since Mar 2024
2774 posts
Posted on 5/20/25 at 11:13 pm to
My only concern is that people will find a way to abuse it. Don't pay me. Tip me! Maybe this just a start of a road to 0% income tax.
Posted by LawyerBillboards
Member since Jun 2021
82 posts
Posted on 5/20/25 at 11:22 pm to
I wonder how this will affect the amount of income claimed by tipped employees?

Will state taxes still provide the same amount of deterrent? State revenue might actually increase slightly.
Posted by tarzana
TX Hwy 6-- the Brazos River Valley
Member since Sep 2015
30776 posts
Posted on 5/20/25 at 11:46 pm to
quote:

But, it's a horrible precedent

Ridiculous. Do you realize that most waitstaff in restaurants don't even earn minimum wage? The tips and whatever corporate healthcare benefits they have are their only meaningful income, in many cases.
Posted by OU Guy
Member since Feb 2022
24977 posts
Posted on 5/21/25 at 12:01 am to
My bartender leaned left 5 years ago. Over that time I’ve slowly mentioned all the shenanigans of the left. Starting with burning down cities and riots. Then educating him on inflation. Then foreign affairs. And drawing from SPR which is our oil “savings”.

And many other events. Never pushed anything just small civil talk and comments.

Recently I asked him how no tax on tips would help him and his answer was it would bump his pay by leaps and bounds. He said most of his income is tips and this would be huge.

He said most of his tips are done via debit or credit card so are well documented and no taxes on tips would be like getting 3 promotions. Said because very few people pay bu cash the tips are 95% documented and can’t get around taxes.

I mentioned that one party wants you to keep more money and let you decide how to spend it vs other one wants to take it and dole it out to who will vote for them which is not sustainable.

He said this would be the most impacting thing any politicians have ever done for his way of life ever. And he was grateful if it passes.

Just one random person who serves beer and drinks. But I can see his political views changing over those 5 years.
This post was edited on 5/21/25 at 12:05 am
Posted by Motownsix
Boise
Member since Oct 2022
3153 posts
Posted on 5/21/25 at 12:26 am to
quote:

Can you expand on this? My impression was that tips were not included in payroll taxes.


As far as I know as both an employee and a business owner tips are currently a 100% part of both employee and employer taxes. As an employer I’d love that my employees no longer claim tipped income. It would save me about $5k per payroll.

If tips no longer matter why would they be reported at all? What’s the possible penalty for not reporting something that’s not required?
I guess some of this depends on how you assume tips are collected and then disbursed. This certainly varies from business to business. Is there a chance that the income supplemented by tips hourly wage policy goes away? That in itself would be a major problem for low income states like Louisiana. My impression is that big business like Darden and Brinker will benefit from this the most.
Part of my business portfolio includes restaurants and I’m super excited to cut my payroll in those places.
This post was edited on 5/21/25 at 12:42 am
Posted by I20goon
about 7mi down a dirt road
Member since Aug 2013
19464 posts
Posted on 5/21/25 at 1:07 am to
quote:

As far as I know as both an employee and a business owner tips are currently a 100% part of both employee and employer taxes. As an employer I’d love that my employees no longer claim tipped income. It would save me about $5k per payroll.

If tips no longer matter why would they be reported at all? What’s the possible penalty for not reporting something that’s not required?
I guess some of this depends on how you assume tips are collected and then disbursed. This certainly varies from business to business. Is there a chance that the income supplemented by tips hourly wage policy goes away? That in itself would be a major problem for low income states like Louisiana. My impression is that big business like Darden and Brinker will benefit from this the most.
Part of my business portfolio includes restaurants and I’m super excited to cut my payroll in those places.
That's one thing that I think that is being under-discussed regarding this: benefits to business (small and large) in addition to the employees themselves.

I suspect the employer benefits is the real reason Trump sought this and the employee benefit is the marketing (it's a great "plus" benefit too).
Posted by Tigerdew
The Garden District of Da' Parish
Member since Dec 2003
14947 posts
Posted on 5/21/25 at 1:10 am to
quote:

Any news on not taxing Social Security?


This one should take about 3 minutes to pass. It gives seniors/disabled a small bump up and ends the absurd practice of charging taxes on money from...... taxes already paid into the system.
Posted by Motownsix
Boise
Member since Oct 2022
3153 posts
Posted on 5/21/25 at 1:22 am to
quote:

That's one thing that I think that is being under-discussed regarding this: benefits to business (small and large) in addition to the employees themselves.


I personally don’t see how this benefits the low wage employee at all. They already get most of that money back as it is.
The opportunities for big business are endless. Define the parameters and I’ll tell you all the ways I’m gonna make $$$.
Undeclared income is a predatory practice where the employee is the victim.
Posted by jizzle6609
Houston
Member since Jul 2009
17876 posts
Posted on 5/21/25 at 3:36 am to
quote:

fricking retarded. Not that many tipped ppl pay taxes anyway. But, it's a horrible precedent


Now what constitutes as a tip

If I give my kid a 200,000 tip after dinner is that now non taxable?
Posted by BamaGradinTn
Murfreesboro
Member since Dec 2008
28702 posts
Posted on 5/21/25 at 4:14 am to
quote:

I personally don’t see how this benefits the low wage employee at all.


Not all servers are low income at all.

For my son's birthday I took my son, my brother, and his son to dinner at Fleming's steak house. Appetizer, steak, dessert. The bill was $500...no alcohol was ordered. Service was excellent, I left a 20% tip. $100. One table, one night, two hours. The guy made $100. How much does he make in a week?

I did leave the tip on my card, so he may have had taxes deducted. I think I'm going to start trying to leave cash instead.
Posted by Jorts R Us
Member since Aug 2013
16904 posts
Posted on 5/21/25 at 5:34 am to
quote:

Bootlicker. Tax me harder Mr tax man!


Your attempts to spin his comments as pro tax make you look so dumb.
Posted by Jorts R Us
Member since Aug 2013
16904 posts
Posted on 5/21/25 at 6:05 am to
quote:

fricking retarded. Not that many tipped ppl pay taxes anyway. But, it's a horrible precedent.


You're getting blasted for this but only 10% of servers make over 60k. (The median is like 30k). Even at 60k, a single filer with one kid is paying around a 5% ETR w/ respect to federal income tax. Throw in two kids and you're barely paying federal income tax.

It's estimated that tips account for anywhere between 50-70% of servers' earnings. Using that same 60k example, your server with one child actually has a negative ETR under the proposal because of the CTC. Meanwhile, some salaried executive assistant with the same income and family profile is still at the 5% ETR, all because the government bestowed special status on server income. Picking winners and losers is neat, huh?
This post was edited on 5/21/25 at 6:44 am
Posted by ole man
Baton Rouge
Member since Nov 2007
16947 posts
Posted on 5/21/25 at 6:10 am to
I wonder how many liberal leftist servers out there are gonna complain about this one and say no tax me?
Posted by Tigergreg
Metairie
Member since Feb 2005
24499 posts
Posted on 5/21/25 at 6:15 am to
quote:

Now what constitutes as a tip

If I give my kid a 200,000 tip after dinner is that now non taxable?


Not that simple. Don't you think the bill has specifics on what it covers, such as "in a retail business establishment". The bill would never say "no taxes on tips" and be the end of it.
Posted by jizzle6609
Houston
Member since Jul 2009
17876 posts
Posted on 5/21/25 at 6:50 am to
quote:

Not that simple. Don't you think the bill has specifics on what it covers, such as "in a retail business establishment". The bill would never say "no taxes on tips" and be the end of it.



Seems like a fantastic way for shady folks to pay to have things “done” with a large tip.

Posted by Mo Jeaux
Member since Aug 2008
62575 posts
Posted on 5/21/25 at 6:53 am to
quote:

Not all servers are low income at all.

For my son's birthday I took my son, my brother, and his son to dinner at Fleming's steak house. Appetizer, steak, dessert. The bill was $500...no alcohol was ordered


A $500 bill for 4 people isn’t extravagant.
Posted by Pandy Fackler
Member since Jun 2018
21114 posts
Posted on 5/21/25 at 6:55 am to
quote:

I pretty much agree with your sentiment, but anything that takes money out of the government’s pockets is a good thing. Hard working servers need a break


Hard working servers need to get a better job is more like it. Ditch diggers pay taxes, garbage men pay taxes, folks who work the register at Walmart pay taxes. Who the frick is a waiter that he shouldn't pay taxes on his income? What makes that frickin' guy so special?
Posted by SDVTiger
Cabo San Lucas
Member since Nov 2011
94051 posts
Posted on 5/21/25 at 6:59 am to
quote:

Who the frick is a waiter that he shouldn't pay taxes on his income?


Waiters get tax free hourly pay?
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