Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
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Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#2How about no tax on people below the poverty line? When I was young it always killed me to make so little and still pay taxes.
Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#3It needs to be clear if I'm shafting a sub-minimum wage worker, or declining an egregious tip-ask at the self-check counter.
Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#4How about no tax on people below the poverty line? When I was young it always killed me to make so little and still pay taxes.
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Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#5What's more likely is some bean counter at the IRS realized enforcing taxes on tips cost more money to enforce than they gained, or was barely break even. It's an easy political win at no risk.
Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#6How about no tax on people below the poverty line? When I was young it always killed me to make so little and still pay taxes.
That's pretty hard to do when the absolute majority of the sum of taxes is paid by poor people. Even if you taxed the rich at 99%, it would be short by orders of magnitude - and then of course you have to consider https://en.m.wikipedia.org/wiki/Laffer_curve
Also, there's a distinction between people below the poverty line, and young people making little wages in their early jobs. Why shouldn't we tax the rich kid working at McDonald's because their trust fund requires them to work for a decade before they get access to it?
Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#7What's more likely is some bean counter at the IRS realized enforcing taxes on tips cost more money to enforce than they gained, or was barely break even. It's an easy political win at no risk.
What's to prevent corporations and the rich from taking advantage of this? ie, my job is $10k + rest in "tips"?
Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#8I assume business would just lower the amount they pay, since tips would be worth more.
Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#9How about no tax on people below the poverty line? When I was young it always killed me to make so little and still pay taxes.
There is argument against and in favour. France works like that and it means a lot of people don’t pay taxes and in return don’t feel very connected to the state spending. It’s weird but I think a token amount of tax completely offset by state handovers is preferable to no tax purely from a mind set point of view (you too are part of the collective and contribute to the working of the state).
The whole thing is a bit disingenuous anyway when so much of tax revenue actually comes from VAT and other indirect taxes.
Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?
#10Increasing the tipped minimum wage means that restaurants will add that cost to the menu. Because tips are based a percentage of your order, this means that customers actually pay more money in tips, even though these laws are marketed as reducing the need for tips.