I think what people are trying to explain to you is that if you don’t carefully write the language around what a tip is and/or limit the benefit to those with an income lower than what a high earning waiter makes, executives will ABSOLUTELY get in line to use whatever verbiage ends up in the bill to redefine their bonuses so they don’t get taxed. Also, no tax on tips will f**k servers when it comes to collecting Social Security later. |
We could easily lower taxes on people with low incomes. There is zero reason to do it for people who work for tips. It is just going to create weird incentives and problems. Just lower the rate for lower income people. Or exempt a certain amount if your AGI is below $x, and step it up so it isn’t all or nothing. |
We already do this. |
So, as I said, limit the income for the benefit or write the language so it can’t be loopholes like the executives will want to. Executives not paying taxes on their bonuses - when they will redefine their entire compensation package as a bonus - will eliminate a whole lot more revenue - or “bathwater” - than tips for servers will. |
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No legislative proposals on them yet . House cannot afford them in their reconciliation instruction so we’ll see what they do next week. |
This. Republicans actually made the tax code simpler in 2017. This would be terrible especially since Trump wants to fire 40% of IRS staff. |
They did not make the tax code simpler in 2017. They layered on additional complexity, while cutting tax rates. Anyone who has actually worked in public accounting on the tax side of things will disagree with this statement. |
Just set a max on the exclusion and tie it to non-salary workers. |
I'll continue. National debt 103K per person and 323K per worker. Interest on the national debt per year is more than defense spending per year. #gottastartsomewhere |
It adds trillions more! https://www.cato.org/blog/senate-plan-trap-house-lawmakers-shouldnt-fall-it |
We will have to start somewhere cuz this bill will make of those numbers worse. They’re making these cuts and proposing a national car tax to help give more tax cuts to billionaires. |
So does that mean everything goes back to the status quo ante? Did they cut USAID? (Article behind paywall) |