"No tax on tips"

[vraiblonde]

This seems like a good idea on a knee-jerk, but when you think about it it's a loser. Or maybe not... I'm still thinking about it.

You don't see a lot of older tipped employees. Tipped jobs tend to be young people who will be moving on to other jobs as they get older. I'm okay with them not declaring their tips. My dog groomer - I tip her in cash specifically so there's no record of it. In fact I tip in cash whenever possible - they can decide whether or not they want to declare it and how much of it. Once the money leaves my hand it's no longer my business.

The problem is older people who tips make up the bulk of their income. If they don't declare it, it's not counted as income and can hose them when they try to get their social security. It also goofs up your credit because you're not showing income to, say, buy a car or rent an apartment.

But then there are older older people who are just supplementing their social security, trying to make some extra scratch. Declaring their tips does nothing except give Congress more money to piss away on foreign countries and illegal aliens. If they hid their tips....well....they should. There is no benefit to them to give a cut to Uncle Sam.

If our government was a good steward of our tax dollars I'd be more inclined to want everyone kicking in. But they're not. They use OUR treasury as their personal piggybank, so if some bartender or Uber driver wants to hose them out of "Ukraine" money and put it in their own pocket, I have no heartburn with that.

Thoughts?

 

[Hessian]

I am tipping more in cash than I was ...just like its 1985 again.
Cash is a pillar of our independence...beyond the addictive scrutiny of government. When you deal in cash,...you help it last just a little longer.

 

[WingsOfGold]

Nothing wrong with it at all, I like the idea.

 

[rio]

Waaay back when I was a waitress our tickets were added up and 10% was automatically added to our earnings and taxed, whether you made more or less. If it was less it was usually because you sucked as a waitress. Most of us always made more, in cash, and that was not claimed or taxed. Best of both worlds really. This was in the mid to late 80's and more people tipped in cash then. I still only tip in cash. I still start at 10% and will go up or down from there depending on the service. Tipping used to be a bonus for good service, not a participation award, and I'm the b!tch that still feels that way.

 

[CPUSA]

I am tipping more in cash than I was ...just like its 1985 again.
Cash is a pillar of our independence...beyond the addictive scrutiny of government. When you deal in cash,...you help it last just a little longer.

I don't tip anymore...

1. They are now making $15/hr
2. Because of that, the price of everything else has skyrocketed.
3. And if you tell me they AREN'T making $15/hr...then someone lied to me over that entire fight for 15....suffer the consequences of a VERY BAD bluff....

 

[LightRoasted]

For your consideration ...

Tips are for providing a "service" to another person. Tips are not income. In fact the wage paid to waitstaff by the business is not income either. Therefore not taxable.

Look up the definition of "income" from the era when the Constitution was written, wages is not among the definition. "Income" has always been defined as monies received from investments, rents, after expenses profits, interest (usury) on loans, etc.. When the tax on "income" was at 90%, it wasn't merely for revenue to government, but to encourage the reinvestment of that money back into businesses operations to expand the business, and create employment. So you either sent the govement 90% of profits, or you reinvested it back into the business to grow. Most businesses preferred the reinvestment route.

Wages are paid to a person in exchange for their labor and becomes their personal property. Taxing a person's wages is theft of personal property.

 

[kwillia]

I don't tip anymore...

1. They are now making $15/hr
2. Because of that, the price of everything else has skyrocketed.
3. And if you tell me they AREN'T making $15/hr...then someone lied to me over that entire fight for 15....suffer the consequences of a VERY BAD bluff....

I agree.

 

[Bobwhite]

This seems like a good idea on a knee-jerk, but when you think about it it's a loser. Or maybe not... I'm still thinking about it.

You don't see a lot of older tipped employees. Tipped jobs tend to be young people who will be moving on to other jobs as they get older. I'm okay with them not declaring their tips. My dog groomer - I tip her in cash specifically so there's no record of it. In fact I tip in cash whenever possible - they can decide whether or not they want to declare it and how much of it. Once the money leaves my hand it's no longer my business.

The problem is older people who tips make up the bulk of their income. If they don't declare it, it's not counted as income and can hose them when they try to get their social security. It also goofs up your credit because you're not showing income to, say, buy a car or rent an apartment.

But then there are older older people who are just supplementing their social security, trying to make some extra scratch. Declaring their tips does nothing except give Congress more money to piss away on foreign countries and illegal aliens. If they hid their tips....well....they should. There is no benefit to them to give a cut to Uncle Sam.

If our government was a good steward of our tax dollars I'd be more inclined to want everyone kicking in. But they're not. They use OUR treasury as their personal piggybank, so if some bartender or Uber driver wants to hose them out of "Ukraine" money and put it in their own pocket, I have no heartburn with that.

Thoughts?

This is one of those rare occasions that I disagree with you.

When someone accepts a job offer (any someone, any job) they do so knowing what payment is being offered for their services. It’s part of the contract. This is true for CEO’s, managers, administrative personnel, custodians, landscapers, and wait staff.

If I am applying for a job as a custodian, and I’m asked to come in for an interview, under normal circumstances, the duties of the position would be outlined and a payment would be offered. At that point, it is up to me to either accept or decline the offer.

If I accept the offer, I do so knowing that I will be paid the agreed-upon amount for performing the duties that were outlined in the interview.

It’s no different for wait staff. They accept a job knowing that they will receive a reduced minimum wage because it is expected that most of their income will come from tips. To my mind, this is the best motivator for doing an excellent job. And let no one fool you. Superior wait staff receive superior income in the form of tips.

If you are just starting out in a wait staff job, and after some amount of time, say six months, you don’t feel that you are making enough money, then perhaps you should find other employment.

The custodian also does superior work and receives no tips. Tips were not part of the custodian’s agreement.

I can’t think of a good reason to tell one segment of the citizenry that they don’t have to pay income taxes.

The shortfall in revenue will be remediated by further burdening those of us who do not receive tips with higher taxes.

 

[WingsOfGold]

I don't tip anymore...

1. They are now making $15/hr
2. Because of that, the price of everything else has skyrocketed.
3. And if you tell me they AREN'T making $15/hr...then someone lied to me over that entire fight for 15....suffer the consequences of a VERY BAD bluff....

Depends on where they work I'm sure. The gals at Texas Roadhouse no doubt do very well and I reward them for their excellent service. They probably make more than I ever did but again service........... ain't easy pleasing everybody.

 

[WheezyCarl]

I don't tip anymore...

1. They are now making $15/hr
2. Because of that, the price of everything else has skyrocketed.
3. And if you tell me they AREN'T making $15/hr...then someone lied to me over that entire fight for 15....suffer the consequences of a VERY BAD bluff....

Stay home and cook for yourself if you do not tip your server.

 

[Bobwhite]

I'm all in favor of eliminating the income tax for everyone and going to a consumer tax.

 

[vraiblonde]

I'm all in favor of eliminating the income tax for everyone and going to a consumer tax.

States that don't collect income tax prove that it works.

 

[LightRoasted]

For your consideration ...

I'm all in favor of eliminating the income tax for everyone and going to a consumer tax.

There's already a consumer tax, it's called a sales tax.

 

[RoseRed]

On the receipt for lunch today, what used to be suggested as 10%, 15% and 20% is now listed as 20%, 25%, 30% and 35%.

 

[CPUSA]

Stay home and cook for yourself if you do not tip your server.

Better yet...don't threaten me for higher wages when you know DAMN WELL you were making it in tips...been there...done it myself...
Don't like it? Go fight with whoever convinced you they were there to help you and have cost you much needed income

 

[Bobwhite]

For your consideration ...



There's already a consumer tax, it's called a sales tax.

Right. But I'm talking about increasing the sales tax and eliminating the income tax.

 

[SamSpade]

I don’t know what to do - but we can’t afford to eat out as much anymore. With a family my size - I end up ordering soup or something just to keep the bill under a hundred. Needless to say, not too pumped about eating out anymore.

But at places I worked years ago - tips given the waiter/waitress were shared with busboys and servers. Sometimes even with servers in the kitchen. For example one restaurant had a tier of servers that assembled portions of the plates - we called them line staff. Hostesses made the least but generally they had the easiest job. Cocktail waitstaff made the most and typically didn’t have to divide tips.

Years ago. I have no idea how most restaurants do it now.

Frankly I wouldn’t mind a tax plan that is extremely simple. A flat tax with a consumption tax - and that’s it. No deductions. No returns to file. But Washington loves to offer deals to people and corporations through taxes - they won’t give that up too easily.

 

[WheezyCarl]

Better yet...don't threaten me for higher wages when you know DAMN WELL you were making it in tips...been there...done it myself...
Don't like it? Go fight with whoever convinced you they were there to help you and have cost you much needed income

Threaten you?? Wow. Entitled much? Stay TF home, we don't need people such as yourself patronizing our establishments, looking for freebies. I hope someone spits in your food.

 

[CPUSA]

Threaten you?? Wow. Entitled much? Stay TF home, we don't need people such as yourself patronizing our establishments, looking for freebies. I hope someone spits in your food.

That's exactly what I thought when I saw the fight for 15 everyplace...weren't happy with it? find a better job...

 

[WheezyCarl]

Not following your random spewing at the mouth, but yes- I love my job. I manage one of the best teams in the service industry. You'd be fortunate to ever step foot in our establishment. Buh bye.