“There are three kinds of people in the world: those who can count and those who can’t.”
“68.7% of statistics are made up on the spot.”
It’s okay to be a one-trick-pony if it’s a really good trick.
Aren’t tips discretionary? Can’t I just say fuck you to them if they bill me as tips?
That works this time. Next time might be a problem.
Worked for trump for 50 years.
A lot of things work for Trump that don’t work for the rest of us.
Trump’s no-tipping tax idea is truly weird. I would have to assume that for MAGA types tipping is even less popular than immigration.
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It’s straight up pandering. He threw that out in Nevada, where the hospitality industry employs thousands. He’s just saying that to get their votes.
Why should that portion of their income be tax exempt?
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The proposal is to make it income tax exempt - not tax exempt. Working class tipped employees pay far more in payroll taxes then income taxes and nobody is anxious to offer that exemption.
Still, why should this portion of their income be exempt?
Aren’t both based on income? I’m pretty sure a waiter making $40k pays the same taxes as a plumber making $40k.
Short answer, no. Tipped employee will have self employment tax and will pay quite a bit more. Pretty sure that is correct.
Tipped employees are not independent contractors, they work for the restaurant (or whatever). They get a minimum wage from the restaurant and their other income is tips. They are supposed to claim tips along with their wages when they file taxes.
It’s been a long time since I was working for tips, but I seem to recall having to enter tips when clocking out. Then that money was included on my W-2.
“All cash and non-cash tips an received by an employee are income and are subject to Federal income taxes. All cash tips received by an employee in any calendar month are subject to social security and Medicare taxes and must be reported to the employer.”
Anymous Grindr usage spikes every Republican convention in the host city.
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Seems like you are correct - I was under the impression that reported tips still subject to “self-employment” tips. I know some folks who have had to do this, now wondering if their employers were encouraging them to under report so they could save on payroll taxes.
For one thing, tracking it is onerous and it would be for almost no reason as most tipped workers earn too little money to pay much, if any, income tax anyway.
Something like tips under $X per year should not have to be reported and $X should rule out most servers, hair cutters, delivery people are such.
Tracking it is easy. Credit card tips are added to your check and cash tips are self reported when you clock out (or are supposed to be). Then it’s all included on your W-2.
Server’s and bartender’s tips make up the majority of their income. In Missouri, the minimum wage for servers is $6.15 per hour. Tips must cover the other half of the minimum wage or the restaurant has to cover it.
X=20 per month (see previous link).
If we really wanted to help lower income employees, we’d raise the standard deduction. I think it should be based on the cost of living. In MO, that’s around $2000 a month or $24,000.
Stop taxing earned income and start taxing wealth.
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Baby steps…
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Nazis have been rallying in Nashville