Harris pledges to work to end taxes on tips for service industry employees, echoing Trump vow(apnews.com)

posted 3 months ago

Beaver [she/her]@lemmy.ca

politics@lemmy.world

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Kecessa@sh.itjust.works

10 points

3 months ago

Why is it bullshit? Just because your income comes from clients instead of your boss doesn’t mean it’s not income.

Hell, the US became the US because of the “no taxation without representation” thing, should people who work for tip not be eligible to vote?

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Boozilla@lemmy.world

-1 points

3 months ago

Because employers use tips as a reason to pay workers less, even less than minimum wage. It’s a tax on the lower working class. Meanwhile executives like Bezos pay almost zero taxes.

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breakingcups@lemmy.world

11 points

3 months ago

So why choose the wrong solution then? Tax billionaires fairly. Don’t arbitrarily make the waiter not pay taxes but the cook in the back has to? That’s not equal, that’s not fair.

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Boozilla@lemmy.world

1 point

3 months ago

I think tips in general are bullshit and the real answer is to raise minimum wage much higher, so it keeps up with worker productivity. I would prefer that, and to do away with tipping culture entirely. However, passing a tax relief thing is always much easier goal in the US than raising minimum wage, so I’m not letting an ideal internet reply guy solution get in the way of something that actually helps workers. As for it not being fair to the cooks in the back, different jobs pay differently. And believe it or not, some wait staff do share tips with the cooks.

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Kecessa@sh.itjust.works

1 point

3 months ago

Ok but you said so yourself, it’s work being paid, it’s earnings, are you saying people shouldn’t pay taxes on their earnings?

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Boozilla@lemmy.world

-1 points

3 months ago

They will still pay income taxes, just not on the tips portion. This is not at all different than the tiered taxes we already have.

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Kecessa@sh.itjust.works

1 point

3 months ago

It is different though… At the moment they’re paying on all their income based on tax brackets, with the current they’ll only pay on the regular salary part.

I worked for tip for over a decade, it would have meant not paying taxes on about half my earnings, with tax brackets that would have meant (where I’m at) 3500$ in taxes instead of 13000$ because two thirds of the first half would have been under the minimum taxable amount.

Tips aren’t a gift, it’s salary that comes from customers in exchange for services. You’re creating two classes of lower income citizens if you say that some people don’t have to pay taxes on what might be the majority of their income while the rest pays taxes on all their income.

It’s a bad solution.

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