Somebody educate me because I haven't really been paying attention to this. What am I supposed to like or hate about this thing?
The Big Beautiful Bill
- Thread starter vraiblonde
- Start date
You have to hate it because Trump wants it.
I’d be actually surprised if the no tax on overtime actually ended up in there.
My bet was that would get killed for sure.
I'll not comment on the overtime but the relief of tax on tips is a good thing IMO. The current MD minimum wage for wait staff is $3.63/hr. The minimum wage is $11.75/hr. The servers rely on tips to make up the difference and many times the tip does not cover it and to tax them on the tip would further reduce their hourly wage.
it was a great idea to codify all the Dodge Cuts ... now FULL of un-needed spending like 4.5 Trillion Worth to BUY Congressional Support and Votes
TYPICAL Washington Corruption
Rommey
Well-Known Member
1. Current Law: Tips are considered taxable income and are subject to federal income tax, Social Security tax, and Medicare tax.
2. Proposed Changes:
2. Proposed Changes:
- No Tax on Tips Act (Senate): This bill proposes a new tax deduction for cash tips, allowing eligible workers to deduct up to $25,000 of their reported tip income from their taxable income.
- One Big, Beautiful Bill Act (House): This bill also includes a provision for a tax deduction on tips, with a similar income limit ($160,000 in 2025) and a deduction amount, but it is part of a larger tax package.
- Deduction, Not Exclusion: The proposals are structured as deductions, meaning workers would still report their tips but could deduct a portion of them when filing their taxes.
- Income Limits: The deduction is intended for workers earning less than $160,000 annually, with adjustments for inflation in future years.
- Qualifying Occupations: The deduction is intended for jobs where tipping is customary, such as servers, bartenders, hair stylists, etc.
- Social Security and Medicare Taxes Still Apply: Even with the deduction, workers would still be responsible for paying Social Security and Medicare taxes on their tip income.
I worked at the headquarters of a major restaurant company for over 20 years. Servers accept the less-than-minimum-wage when they accept the job because they know the majority of their income comes from tips. The good servers often make more than some of the managers. If they are not making a decent living, they need to find other work.
WingsOfGold
Well-Known Member
I don't have a problem with tips at all really I see it as a gift, OT ..... that's where a flat tax might be a good thing.
Okay, so that's what they don't like. The Dembots are saying it guts Medicare, etc etc, but what it really does is demands accountability to curtail WFA.
Times have changed in the service industry. There is a whole segment of society that doesn't tip or tips the change left from a $20 on a $19.25 bill. If you talk to the servers many will tell you they take turns serving the usual suspects so they share in the tipless misery.
And for many the tips are distributed (shared) by all at the end of shift as management policy. Because I feel I am tipping for the service provided to ME by a SPECIFIC server I will hand the tip to the server and say "this is yours". I do often pass a tip on to the kitchen staff as well if the food is good.
What about no taxes on SS? Did that make the cut? Because I've always thought that should be a thing, not just now that I'm coming up on collecting.
Also that you can only have $24k/yr or something in other income before they start cutting your benefits. That threshold needs to be higher by at least $12k/yr. I get why they don't think Jeff Bezos should be able to collect SS, which I may or may not agree with, but someone supplementing their $2k/mo SS with $2k/mo in IRA withdrawals shouldn't be penalized.
Rich people always think everyone else is rich. They have no concept of poverty, or even middle class. That's why politicians shouldn't be able to implement these stupid things. They insist everyone needs to "pay their fair share"....except for them.
Also that you can only have $24k/yr or something in other income before they start cutting your benefits. That threshold needs to be higher by at least $12k/yr. I get why they don't think Jeff Bezos should be able to collect SS, which I may or may not agree with, but someone supplementing their $2k/mo SS with $2k/mo in IRA withdrawals shouldn't be penalized.
Rich people always think everyone else is rich. They have no concept of poverty, or even middle class. That's why politicians shouldn't be able to implement these stupid things. They insist everyone needs to "pay their fair share"....except for them.
TPD
the poor dad
I'm not a fan of the no-tax on tips. Too many service industries have their hand out these days for tips. I see an abuse of the system coming on. Gives an unfair advantage to certain segments of the population. Why not no tax on wages for trash collectors? Lottery winnings? School teachers? Put a crack in the damn and you will soon have a flood.
yeah WTF I'm living on 60% of what used to be my salary why in hell are there taxes on SSSI ... all these yrs gone by, you would think Dem's would have pushed through removal of taxes on Social Security Benefits
black dog
Free America
In most States if the wait staff doesn't make minimum wage including tips the employer has to make up the difference. Its not something most employers want to do.
TPD
the poor dad
In the case of the restaurant industry, tips are wages paid by the customer, not the business.
black dog
Free America
Its part of the wait staffs hourly income.
That's something else that confuses me: how does cutting spending result in a higher federal deficit?