The same clowns are lying to Americans about Republicans taking away their social security. It’s the same bs they have been lying about for many decades now. The whole Democrat platform is scare tactics and ideas that are bad for America.
213 Democrat congressmen voted AGAINST no tax on tips or social security
- Thread starter Savannah_Dawg
- Start date
It’s insane. They just want to give money to Arab Studios majors who took out $250,000 in student loans
Tipping is income for services provided and should be taxed. If you are trying to help low earners, then change their tax bracket rate.
As a CPA, what this is going to do is cause a lot of high income earners to figure out how to get tipped instead of receiving their income how they currently do.
I wondered about that. I saw an explanation to this somewhere a while back. I will try to find it. As you know people will always try to find a loophole. I think I saw it limited to certain businesses. I also think the punishment for getting caught getting away with this will be severe. Fwiw. Which isn’t much.
Kickbacks will become "tips." lol
I haven’t read any of the intended language, but IMO, you still make tips reportable, but exempt the first $25k or $50k of tipped income. If you are making six figures in tips the why should your income get preferential treatment over a nontipped employee? That is one way to lessen the incentive for newly tipped tax filers to appear out of thin air.
Still don’t like the idea, though.
EDIT Although an AGI limitation would work for my concerns, too.
I dug a little into what I mentioned above in response to you. They are going to limit this to a certain income group too. I found responses to this by some supposed economic experts to be borderline idiotic. One response was this will keep restaurants and tip based businesses from paying a higher hourly wage. And discourage them from paying fairly. I waited tables on and off for a couple of years to pay for school. Got paid 2.13 an hour at one chain. The most was like 3.12 at a mom and pop place. (Allen’s) my daughter was waiting tables up until about a month ago. All of my kids will do this, to appreciate the service industry. To my surprise she was still getting just 2.13 an hour. 30 years later. You never actually receive a paycheck. It goes to your taxes. This should certainly lead to more money upfront for the folks in the restaurant industry.
High income earners don't have to "figure out how to get tipped instead of receiving their income how they currently do." That shadow economy already exists.
You don’t need a shadow economy conspiracy to accomplish that.
Tax planning is what I do for a living. If you aren’t a W-2 employee, somebody can probably help you pay less in taxes than you are now,fully above board. It is hard to outright avoid incometaxes,but often the tax bill can be deferred a long,long time.
If you are talking estate taxes, I could blow your mind with how easy it is to avoid your estate tax,but to remove those assets from any possible future estate tax for your heirs. And the method for doing this is all found in the Internal Revenue Code, even though I personally think it is bad public policy.
Do you remember when in his first run the Dems were blasting Trumpfor not paying taxes? Duh, he was using net operating loss carryforwards that every mom and pop shop would also use.
Really good tax planning is not subterfuge, it is helpingg you structure things that, in accordance with the law, most tax advantageous.
Nobody is risking their CPA license to save you money, they just know how the law works.
My goodness, what did I say to get you going? My apologies if I came across as offensive. I'm certainly familiar with how routine tax avoidance works, including loss carry back/carry forward and the implications for real estate magnates. Not what I'm talking about, nor am I referring to conspiracy theories.
If you think there aren't bartering and other methods to conduct some business off the record or to avoid money changing hands, I've got some news for you. Remember the college basketball sting? How much of that money do you think made it onto a tax return?
I can tell you graft is a thing if you want to develop commercial property inside the Scottsdale city limits.
Last edited:
I knew a couple of dentists that used to barter everything from auto mechanics to lawn services. And why not, it was a great deal for all involved.
Tip. In Las Vegas everyone works for tips. Parking lot attendants make six figures, yet are going to pay no taxes? Not that they do anyway. They’re thinking about the waitress, but what if doctors and stockbrokers start taking tips instead of fees and commissions? A lot of things to consider.
Tip. In Las Vegas everyone works for tips. Parking lot attendants make six figures, yet are going to pay no taxes? Not that they do anyway. They’re thinking about the waitress, but what if doctors and stockbrokers start taking tips instead of fees and commissions? A lot of things to consider.
