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

Posted on 7/2/25 at 10:10 pm to
Posted by Tiger Prawn
Member since Dec 2016
25112 posts
Posted on 7/2/25 at 10:10 pm to
quote:

Their hourly wage is taxed.
Servers in restaurants get like $2.15 hourly wage. They might make $60 in hourly pay for the week and $800 or more in tips.

So they should only pay taxes on a small fraction of their total earnings?
Posted by nola tiger lsu
Member since Nov 2007
6928 posts
Posted on 7/2/25 at 10:11 pm to
quote:

Because taxes are theft


Good lord
Posted by tarzana
TX Hwy 6-- the Brazos River Valley
Member since Sep 2015
30653 posts
Posted on 7/2/25 at 10:29 pm to
Not only is the hourly wage taxed, but most waitstaff make less than the minimum hourly wage on payroll alone. I would venture to say the majority of their income is tips, which amounts to a donation-- it's not income, in the traditional sense.
Posted by KCRoyalBlue
Member since Nov 2020
1891 posts
Posted on 7/2/25 at 10:51 pm to
Because I've already paid for the product. I've already paid for the service.

I just happen to see someone that I want to give some of my money to with no fricking strings attached for 1 goddamn time in my life. I don't need the government telling me I can't, when I've already satisfied my part of the governmental bargain in sentence 1 and 2.

frick taxes.
Posted by MajorityWhip
Member since Oct 2020
1167 posts
Posted on 7/2/25 at 10:52 pm to
quote:

How many people accurately report the tips they earn?


Welcome to 1999 when we used cash.
Posted by NoHoTiger
So many to kill, so little time
Member since Nov 2006
46098 posts
Posted on 7/2/25 at 11:08 pm to
quote:

How many people accurately report the tips they earn?

When I waited tables they taxed us based on our sales. Sometimes it worked in my favor, sometimes it didn’t.
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
50798 posts
Posted on 7/2/25 at 11:35 pm to
Tips are gifts, not payment.
Posted by cattus
Member since Jan 2009
15327 posts
Posted on 7/2/25 at 11:37 pm to
quote:

Servers in restaurants get like $2.15 hourly wage. They might make $60 in hourly pay for the week and $800 or more in tips.

So they should only pay taxes on a small fraction of their total earnings?


From my previous post
quote:

When I waited tables 35 yo we got a "servants wage" and I think it 2 or 3 dollars an hour. Here in Seattle the service staff makes $21 an hour before tips.

Posted by droman225
HTown by way of BR
Member since Aug 2011
13455 posts
Posted on 7/2/25 at 11:43 pm to
Nobody. I claim around 45k and clear probably 60k. I would assume most are the same give or take a few thousand
Posted by northshorebamaman
Cochise County AZ
Member since Jul 2009
37517 posts
Posted on 7/3/25 at 1:15 am to
quote:

When I waited tables 35 yo we got a "servants wage" and I think it 2 or 3 dollars an hour. Here in Seattle the service staff makes $21 an hour before tips.
The "servers only make a few dollars an hour on the clock" bullshite hasn't been true in the vast majority of states for years now. Most states require the employer make up the difference up to fed or state min wage or flat out require full federal or state min wage before tips. Servers are happy to perpetuate this myth though, for obvious reasons. And as a caveat for the posters here, most, if not all states that don't, are SEC states.
Posted by DougQuaid
Member since Oct 2018
140 posts
Posted on 7/3/25 at 1:17 am to
A poster above mentioned most sales are card based now. In the past it was cash and surely up to the bartender to (not, typically) report them. Knowing a close friend who owns a current bar, the no tax on tips will realistically give his few employees at least $75 extra a week take home…. From card sales. Thats not huge, but a little useful chunk of cash to ease living costs.
Posted by LSUJuicer
Member since Jan 2013
3860 posts
Posted on 7/3/25 at 4:53 am to
He just wanted votes and all the maga would scream and cheer when he would say this idea.
Posted by Jorts R Us
Member since Aug 2013
16884 posts
Posted on 7/3/25 at 5:18 am to
quote:

Tips are gifts, not payment.


Posted by dalefla
Central FL
Member since Jul 2024
3167 posts
Posted on 7/3/25 at 5:22 am to
quote:

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


LOL. Trump is a master at getting the left to eat its own.
Posted by Hoops
LA
Member since Jan 2013
7898 posts
Posted on 7/3/25 at 5:23 am to
To entice unskilled workers into the workforce
Posted by dalefla
Central FL
Member since Jul 2024
3167 posts
Posted on 7/3/25 at 5:26 am to
quote:

We need a simpler tax code so we can abolish the IRS and make our economy more efficient.


Correct. Tax at the point of sale is the only "fair" tax. I'm surprised they haven't tried to tax us for breathing but they have tried for basically exhaling (carbon), though.
Posted by LSUA 75
Colfax,La.
Member since Jan 2019
4640 posts
Posted on 7/3/25 at 6:18 am to
I like to give tips in cash so they don’t have to pay taxes on them.
Posted by C
Houston
Member since Dec 2007
28159 posts
Posted on 7/3/25 at 6:24 am to
Tips are gifts. Gifts shouldn’t be taxed below a threshold
Posted by FoTownBam
Foley Al
Member since Oct 2023
4001 posts
Posted on 7/3/25 at 6:37 am to
Why do you care? How does this affect you?
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