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re: Why should people who get paid with tips not pay taxes?

Posted on 7/2/25 at 4:33 pm to
Posted by MisslePig
Member since Jul 2018
1148 posts
Posted on 7/2/25 at 4:33 pm to
Because it’s a solid tax break for those making very little, thats not easy to do and should be heralded as a tax break the rich cant take advantage of directly.
Posted by 3down10
Member since Sep 2014
37479 posts
Posted on 7/2/25 at 4:37 pm to
quote:

Question is the title. I get why it made for a snappy campaign slogan, but what is a good non partisan justification for this policy?


Taxes on peoples income is theft. Nobody should be paying taxes on their income.

Posted by theballguy
Member since Oct 2011
30342 posts
Posted on 7/2/25 at 4:38 pm to
quote:

Why should people who get paid with tips not pay taxes?



Damn bro, is this what Democrats are now resorting to? Going after poor people? Supposed to be at least pretend to be the man of the people.
Posted by seedmonster77
Member since Feb 2025
201 posts
Posted on 7/2/25 at 4:39 pm to
I leave cash tip about 80% of the time just knowing that they probably won't claim it. I mean the money was already taxed once right (when i earned it).

Don't get me started on paying taxes on used cars when the original owner of the car already paid tax on it, yet every time the car is sold it has to be taxed again. What a racket.
Posted by RobbBobb
Member since Feb 2007
33359 posts
Posted on 7/2/25 at 4:47 pm to
Because cash tips would be treated as gifts

Its not paid by their employer, nor is it required that you pay. Its like paying for a round of drinks, or buying a meal for the entire table. No one pays taxes on that unearned income
Posted by back9Tiger
Island Coconut Salesman
Member since Nov 2005
17610 posts
Posted on 7/2/25 at 4:56 pm to
Because they make like 3.15 an hour and that's taxed. A lot of these people are college age. I am fine with giving them a break and i am a fiscal conservative.
Posted by Violent Hip Swivel
Member since Aug 2023
8057 posts
Posted on 7/2/25 at 5:05 pm to
It's largely a campaign trail ruse.

When all of these Chilis and Outback and TGI frickers servers don't get the nice income tax return check next winter that they've grown so accustomed to, they'll realize that it was largely a campaign trail ruse.
Posted by Zach
Gizmonic Institute
Member since May 2005
116702 posts
Posted on 7/2/25 at 5:11 pm to
I suppose the tip represents a motivation to do a better job than those jobs that don't involve tips (like the bitch who sometimes delivers my mail).
I tip more for good service in restaurants. But then I remember going to a restaurant in San Antonio that was famous (and popular) for rude service.
Waiter: 'What do you want, moron?'
Me: 'The steak, you fat arse hole.'
Instead of table cloths they used yesterday's newspaper unfolded to cover your table.
Posted by ChatGPT of LA
Member since Mar 2023
4401 posts
Posted on 7/2/25 at 5:12 pm to
Why should they pay? If i give you a dollar today, why should you get taxed. A tip is something I want you to have, it's not mandatory nor is it wages
Posted by PhtevenWithaV
Member since Jul 2022
1066 posts
Posted on 7/2/25 at 5:14 pm to
Did they fix the no tax on tips so it applies to anything other than cash? Or did this end up staying neutered? I haven't checked the Senate bill yet but the house bill it was only on cash and only if you made under a certain amount
This post was edited on 7/2/25 at 5:15 pm
Posted by gothamdawg
NYC
Member since Nov 2015
1289 posts
Posted on 7/2/25 at 5:15 pm to
Obviously this is a great political move.
But, the problem with these exceptions is that they keep making the tax code more complicated and more expensive to administer.

We need a simpler tax code so we can abolish the IRS and make our economy more efficient.
Posted by Jorts R Us
Member since Aug 2013
16884 posts
Posted on 7/2/25 at 5:43 pm to
quote:

To incrementally chip away at the income tax system.


Riiiiight
Posted by Kingpenm3
Xanadu
Member since Aug 2011
9761 posts
Posted on 7/2/25 at 5:45 pm to
quote:

Why should people who get paid with tips not pay taxes?



99% aren't reported anyway, so it doesn't really change anything.
Posted by LSUnKaty
Katy, TX
Member since Dec 2008
4785 posts
Posted on 7/2/25 at 5:46 pm to
quote:

Why should people who get paid with tips not pay taxes?
Because when I give someone a tip I want them to have it all, and the government none.
Posted by Stidham8
Member since Aug 2018
9474 posts
Posted on 7/2/25 at 5:48 pm to
quote:

Because taxes are theft and any chance to frick over the government needs to be taken advantage of.


It really is amazing how the country started because England was ripping off the colonies with taxes without representation.

Now we have high taxes on everything and our representatives rarely have the people’s best interest. They’re bought and paid for by lobbies.
This post was edited on 7/2/25 at 5:49 pm
Posted by VOR
Member since Apr 2009
67424 posts
Posted on 7/2/25 at 5:51 pm to
The most brilliant political analysis ever
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
57886 posts
Posted on 7/2/25 at 5:56 pm to
quote:

but what is a good non partisan justification for this policy?


It's a gift to show appreciation. There's no contractual obligation for people to tip.

Another aspect of this is that in order to justify taxation on tips, one must assume any income -regardless of amount or source or income level of the worker- should be taxed.

Yet another argument is that as most tip-earners would be struggling to make it up to middle class, taxing tips can easily be seen as "a tax on the poor" (this is an especially good argument to make towards those who just bitched about Trump's "tax cuts for the rich").
Posted by scottydoesntknow
Member since Nov 2023
9945 posts
Posted on 7/2/25 at 6:12 pm to
With very few exceptions, people working these jobs are either young or this is their 2nd or 3rd job. Im perfectly fine with these people not paying tax on tips
Posted by doubleb
Baton Rouge
Member since Aug 2006
41751 posts
Posted on 7/2/25 at 6:22 pm to
Gifts shouldn’t be taxed unless they are exorbitant.
Posted by Broadside Bob
Atlanta, GA
Member since Dec 2012
1620 posts
Posted on 7/2/25 at 6:28 pm to
quote:

Their hourly wage is taxed.


So waitstaff pays taxes on a small fraction of their wages while the rest of us pay taxes on all of ours? Does that really seem fair?
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