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re: Senate passes no tax on tips 99-0
Posted on 5/20/25 at 9:58 pm to bigjoe1
Posted on 5/20/25 at 9:58 pm to bigjoe1
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?
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 on 5/20/25 at 11:10 pm to bigjoe1
Does this mean onlyfans hoes now don't pay taxes? Isn't their entire hoe-dom funded by cuck tips?
Posted on 5/20/25 at 11:13 pm to dovehunter
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 on 5/20/25 at 11:22 pm to bigjoe1
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.
Will state taxes still provide the same amount of deterrent? State revenue might actually increase slightly.
Posted on 5/20/25 at 11:46 pm to Privateer 2007
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 on 5/21/25 at 12:01 am to tarzana
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.
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 on 5/21/25 at 12:26 am to NYNolaguy1
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 on 5/21/25 at 1:07 am to Motownsix
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.
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.
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 on 5/21/25 at 1:10 am to riverdiver
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 on 5/21/25 at 1:22 am to I20goon
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 on 5/21/25 at 3:36 am to Privateer 2007
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 on 5/21/25 at 4:14 am to Motownsix
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 on 5/21/25 at 5:34 am to dgnx6
quote:
Bootlicker. Tax me harder Mr tax man!
Your attempts to spin his comments as pro tax make you look so dumb.
Posted on 5/21/25 at 6:05 am to Privateer 2007
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 on 5/21/25 at 6:10 am to bigjoe1
I wonder how many liberal leftist servers out there are gonna complain about this one and say no tax me?
Posted on 5/21/25 at 6:15 am to jizzle6609
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 on 5/21/25 at 6:50 am to Tigergreg
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 on 5/21/25 at 6:53 am to BamaGradinTn
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
Posted on 5/21/25 at 6:55 am to Arbengal
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 on 5/21/25 at 6:59 am to Pandy Fackler
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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