How Stupid Do You Have To Be, To Support The Idea That Someone Just Invented The Wheel.
Exempt tips from taxes, specifically.
"This was a TRUMP idea - She has no ideas, she can only steal from me," Trump posted on Truth Social. "Remember, Kamala has proposed the LARGEST TAX INCREASE IN HISTORY - It won’t happen."
But in fact, Trump did not invenrt that, and Harris did not simply jump on board and steal it.
The no tax on tips idea is gaining bipartisan political steam. On Capitol Hill, Sen. Ted Cruz, R-Texas, introduced the No Tax on Tips Act in July with the support of Democratic Sens. Catherine Cortez Masto and Jacky Rosen, from Nevada, and the powerful Culinary Workers Union Local 226. A companion bill — introduced by Florida Rep. Byron Donalds — is also making its way through the House.
Unaware of the impending bill, Trump said that he came up with the idea, just before his Nevada rally, after hacing a conversation with a cocktail waitress (how that came about is not clear).
Harris is more explicit: this is not on a whim, and it's part of the economic policy statement that's going to be part of the DNC platform, to be released at thre DNC convention next week.
But, this may not be a good idea.
No tax on tips: Why politicians love it, and economists don't
Vice President Harris and former President Donald Trump don't agree on much — especially when it comes to economic policy. But they both want to get rid of taxes on tips.
At a campaign rally in Nevada, Harris joined Trump in supporting tax-free tips.
"It is my promise to everyone here, when I am president, we will continue to fight for working families, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers," Harris told a crowd at the University of Nevada in Las Vegas on Saturday.
Trump has been campaigning on the "no tax on tips" policy since June, after a Las Vegas server told him the government was taking too big of a cut from her tipped wages. Trump touted this policy in Milwaukee during the Republican National Convention.
The idea fails on three counts: equity, efficiency and revenue.
A national ban on taxing tips would disproportionately benefit, for example, a South Carolina server who earns a reduced minimum wage and makes a large portion of their income through tips. While a server in California, where tips make up a smaller portion of their income, would benefit less.
Why treat employees, who perform similar kinds of services, much different from a tax standpoint just because the first earn tips and the second don't?
A no tax on tips law would be extremely difficult to efficiently administer, regulate and oversee. How are we going to tell who is receiving a tip, and when that tip crosses a line into wages? How will we prevent investment bankers, say, from getting tips? And if we impose income limits, well, wouldn't we expect low paid workers just to demand a tip rather than compensation?
Ultimately, hit would distort the labor market. But the biggest barrier for Congress is the money they'd lose. The revenue on this proposal to exempt tips from taxation is something like a couple hundred billion over a 10-year period.
Lastly, this would only benefit 2.5% of taxpayers. But it is a big issue in at least one swing state, which is what makes it interesting.
But the bottom line, is that there's no theft involved here.
OP: some data for this came from an investigation by NPR
"This was a TRUMP idea - She has no ideas, she can only steal from me," Trump posted on Truth Social. "Remember, Kamala has proposed the LARGEST TAX INCREASE IN HISTORY - It won’t happen."
But in fact, Trump did not invenrt that, and Harris did not simply jump on board and steal it.
The no tax on tips idea is gaining bipartisan political steam. On Capitol Hill, Sen. Ted Cruz, R-Texas, introduced the No Tax on Tips Act in July with the support of Democratic Sens. Catherine Cortez Masto and Jacky Rosen, from Nevada, and the powerful Culinary Workers Union Local 226. A companion bill — introduced by Florida Rep. Byron Donalds — is also making its way through the House.
Unaware of the impending bill, Trump said that he came up with the idea, just before his Nevada rally, after hacing a conversation with a cocktail waitress (how that came about is not clear).
Harris is more explicit: this is not on a whim, and it's part of the economic policy statement that's going to be part of the DNC platform, to be released at thre DNC convention next week.
But, this may not be a good idea.
No tax on tips: Why politicians love it, and economists don't
Vice President Harris and former President Donald Trump don't agree on much — especially when it comes to economic policy. But they both want to get rid of taxes on tips.
At a campaign rally in Nevada, Harris joined Trump in supporting tax-free tips.
"It is my promise to everyone here, when I am president, we will continue to fight for working families, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers," Harris told a crowd at the University of Nevada in Las Vegas on Saturday.
Trump has been campaigning on the "no tax on tips" policy since June, after a Las Vegas server told him the government was taking too big of a cut from her tipped wages. Trump touted this policy in Milwaukee during the Republican National Convention.
The idea fails on three counts: equity, efficiency and revenue.
A national ban on taxing tips would disproportionately benefit, for example, a South Carolina server who earns a reduced minimum wage and makes a large portion of their income through tips. While a server in California, where tips make up a smaller portion of their income, would benefit less.
Why treat employees, who perform similar kinds of services, much different from a tax standpoint just because the first earn tips and the second don't?
A no tax on tips law would be extremely difficult to efficiently administer, regulate and oversee. How are we going to tell who is receiving a tip, and when that tip crosses a line into wages? How will we prevent investment bankers, say, from getting tips? And if we impose income limits, well, wouldn't we expect low paid workers just to demand a tip rather than compensation?
Ultimately, hit would distort the labor market. But the biggest barrier for Congress is the money they'd lose. The revenue on this proposal to exempt tips from taxation is something like a couple hundred billion over a 10-year period.
Lastly, this would only benefit 2.5% of taxpayers. But it is a big issue in at least one swing state, which is what makes it interesting.
But the bottom line, is that there's no theft involved here.
OP: some data for this came from an investigation by NPR
