Trump Promised ‘No Tax on Tips.’ Then Came the Fine Print.
- Thread starter Maze
- Start date
T. A. Gardner
Serial Thread Killer
Intentionality fallacy. You make the assumption that "No tax on tips" has to be all-inclusive. That is no tax on tips regardless of the amount. That the spending bill, as passed, caps those means the statement is invalid. By making the claim an absolute rather than a generalization, you change the obvious intent of it.
That Trump got taxes on most tips eliminated is a positive that you turned into a negative.
On the other hand, I see this inclusion as problematic for a different reason. It becomes a tax dodge. Since tips aren't taxed, it will be relatively easy to misstate the amount you received from employment unless all those tips were given electronically (eg., written in on a receipt). Cash tips could go unreported.
That Trump got taxes on most tips eliminated is a positive that you turned into a negative.
On the other hand, I see this inclusion as problematic for a different reason. It becomes a tax dodge. Since tips aren't taxed, it will be relatively easy to misstate the amount you received from employment unless all those tips were given electronically (eg., written in on a receipt). Cash tips could go unreported.
It would cover a lot of part time servers who live with their families. Most of the people trying to make a living for themselves on serving, it does not cover them.
Federal tipped minimum wage is $2.13, so basically $4k a year. Add $25k to that in tips, and you got $29k. That is hard to live on these days.