Positive
Only logged in members can reply and interact with the post.
Join SimilarWorlds for FREE »

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

Great idea!

I tend to think of a tip as a reward or incentive for being treated well. And unless I'm having a deductible business meal the $$ I'm paying as a tip is being paid with money I already pay income taxes on, so if I leave a $2 tip, both me and the person that I'm tipping are being taxed on that $2, and one of us being taxed for that $2 should be enough.
This page is a permanent link to the reply below and its nested replies. See all post replies »
SunshineGirl · 36-40, F
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".
sunsporter1649 · 70-79, M
@SunshineGirl No tax breaks for the poor!
SunshineGirl · 36-40, F
@sunsporter1649 If higher earners paid taxes due rather than concealing their wealth there would be scope to increase the starting threshold to benefit all lower paid workers (not just waiting staff) which would have extensive economic and social benefit.

But of course any redistribution of wealth is Marxist . . 🙄