Taxing Tips
- Thread starter HALL85
- Start date
No tax on tips and no tax on IT are two of the most stupid financial moves ever. First, people who get tips don’t report most of if any tips. It’s an underground economy. Waiters at fine restaurants can earn 6 figures And that will be tax free? They don’t report cash tips at all and are getting a break. I’m sorry, u earn money from your job and you get taxed. Whether it be from tips or OT, it should be taxed. He’ll, there are jobs where OT comprises the majority of someone’s pay. It’s absolutely ludicrous to even propose this.
I guess you both agree that Trump raising taxes on super rich would be brilliant because you didn’t comment on it.
My sense is cash tips have diminished greatly between use of credit card and pay apps. How many people actually pay cash in a restaurant these days? I’m a dinosaur and probably pay with cash 10% of the time. One thing I will do though is tip the server separately from the bill, but most people don’t do that.
And think of the generational change. My kids are in their 30s and lucky if they have five dollars in their wallet.
This is obviously for optics more than anything else.
And think of the generational change. My kids are in their 30s and lucky if they have five dollars in their wallet.
This is obviously for optics more than anything else.
I agree on the tips part. The FICA tip credit has been in place for years and is an incentive for businesses to report as much tips as possible. As Hall85 said the use of cash has greatly diminished. The bigger issue than cash tips is the cash workers at your restaurants, landscapers, cleaning services, etc. where cash sales and payroll are not being reported. We're talking about peanuts when it comes to cash tips compared to the other cash not being reported.
I am in favor of no tax on OT. I'm sorry we are seeing the laziest generation in the history of America entering the workforce. I have no problem incentivizing people to work more. Maybe there's a better way than no tax on OT, but right now there's nothing better than it on the table. Maybe if there's no tax on OT, 1 parent could stay home and raise kids again. I think that would be a good thing.
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No tax on OT is a disaster. For example, a Port Authority police officer’s base pay is like $100k. They can easily double that pay through OT. Longshoreman’s base pay is 85k, But they earn most of their salary which can be $300,000 or more through OT. This would be an absolute travesty to allow that to happen. You earn money and you get taxed on it. Everyone treated the same.
Everyone’s not treated the same based on the tax code. If that’s what you believe there should be a flat tax. A guy making $200k of capital gains pays way less than the guy making 200k working as an officer
