Did I hear right? Trump wants to drop income taxes on tips?

Cutting taxes is not enough. He also has to cut spending by 80%

@SandWitch

I marked Hippyjoe as best answer because I thought it was the best answer.

Taxes are a millstone around he neck of freedom. They undermine the people's choice of what they want to do with their money, which in many cases are superior to what government does with that money.

I just a few weeks ago watched a city commission meeting regarding the need for better workforce housing where it was needed, It was pointed out that apartment buildings funded by federal agencies cost twice as much as the same building would cost if developed by private developers. The cost difference is regulatory agency constraints. The money taxpayers send to Washington DC that come back to local communities lose 50% of their value in that transition, starting with cities that have to spend taxpayer monies just to compete and beg for DC to give them their money back.

For a simple cut to the chase, look at cities that are turning blighted areas into places where people want to live, look at cities that are bringing employers back to their core communities that were were abandoned 15+ years ago with the rush to the suburbs. The lure is tax incentive financing. They turn abandoned factories into workplaces by erasing the real estate tax burden so that new employers can focus on their business rather than on how they can pay their taxes. Tax policies that let businesses and individuals keep what they earn grows the economy. Those waiters and waitresses whose tips would go untaxed in turn get to put that money into other people's pockets, create more jobs, rather than go to Washington where that money loses 50% of its value. That's the essence of why repeated taxation on pass through monies is a horrible policy. It's why sales taxes are paid by retail establishments, and not the wholesalers, distributors and manufacturers. Make all of the above pay the sales tax and everything would be 30%+ more expensive, and with every entity along the chain having to pay that tax they would all be less able to afford it.

I like it. After Seattle implemented the mandatory $15/hour minimum wage, people stopped tipping. Waiters/waitresses saw their take home pay go down. And, of course, fewer people are going out to restaurants, hurting the businesses, leading to reduced hours & layoffs.

A demonocrat never met a tax he did not like

Idk if they drop this tax where will it be made up for? If trump pays his back taxes maybe.

If it is a genuine gratuity, yes. But increasingly tips are treated as a subsidy to a low wage. Making them tax deductible would give hospitality workers a tax advantage not enjoyed by other low paid workers, which is inequitable.

If this became law, there is in theory nothing to stop the restaurant charging the food at cost and making up the balance as a "tip".

That’s been the plan for the longest time. The USA was fine before the federal income tax was implemented. It has been used to finance the endless wars. There will be a flat tax but it doesn’t punish the small business owners and those who need to earn more money for their families etc. So it will encourage people that need the extra income. Also no flat tax on most used goods (or food) so it will help in an environmental way if people want to save money that way.

Good post! This makes for a good debate!
However, I don’t see why tips( someone’s income) should be treated differently than any other Income someone earns.

Wages as a percentage of the economy only ever fall. The USA would only ever make you work more, no matter what the technology level is.

Why should tips be treated differently than any other income?

yes i read that too.