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As is Kamala.Thanks for your insight Its a phony yack yack trump is espousing
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As is Kamala.Thanks for your insight Its a phony yack yack trump is espousing
I think it is ridiculous. Make the system simpler, not more complicated.I have seen taxes in the news recently. One of the things that's getting discussed is whether there should be taxes on tips, overtime and social security. When I read that, I felt like I was back to my childhood, reading about which of these things is not like the other. I don't think there should be taxes on Social Security. I could support no taxes on overtime, but it doesn't make sense to me. Taxes on Tips seems to not fit all for me. If a person makes 2.00 an hour "salary" and $30/hour from tips, why wouldn't that be taxed. If someone flips burgers for 20/hour, why would they pay more taxes than the bartender who is making 35/hour? I'm sure I'm just missing something, but it doesn't seem to make sense on the surface.
That seems just as complicated.We need to go to a simple flat tax system. A flat tax rate on ALL income. No gimmicks, no games, no tax dodging, and no tax code that if it were all in one book it would be 10 feet high.
Then deal with the "fairness" or progressive part on the credits and deductions side. Much more for lower earners, phasing out to a certain income where there are 0 credits and deductions beyond that.
Solves everything.
SS taxes have a ceiling, but so do benefits. Those that earned less make a higher % on benefits. Those that earned more, receivea substantially lower % of benefits back upon retirement. I'd have no problem capping benefits for the wealthy as well. Easy enough to do.How would making poor people and wealthy people pay no tax on their social security make it more fair? It’s my understanding that the poorest SS beneficiaries are already paying no tax on it. Wealthy SS beneficiaries are taxed to the benefit of the system.
The math with reclaiming personal exemptions works out better. The higher standard deduction discourages home ownership and drives up rents.I don't see why we cannot get rid of all the complexity.
Have a standard deduction great enough to help those most in need, then a progressive curve so one knows exactly how much they own based on their income.
I don't understand how the higher standard deduction discourages home ownership? Got a link to help me out?The math with reclaiming personal exemptions works out better. The higher standard deduction discourages home ownership and drives up rents.
Just think "how could Trump benefit from a tax system overhaul ?" and you have the 2017 tax bill.
This. Not parsing out ever more exceptions to taxation. All income should be taxed imo.We need a rapidly more progressive taxation scheme.
Thanks for the infoNot sure if this is still the case……
In the 1986 tax “reform” law, the restaurant lobby opposed ending “business meals” as an expense that could be deducted. The restaurant lobby was given a choice - disallow the business meal deduction or require waits/bartenders to report at least 8% of gross sales as income.
Guess which one the restaurant lobby agreed to?
Now, 8% sounds a lot less than 15% or 20%.
Consider this:
So, you have $1,000 in sales. In 1986, a REALLY good tip average would have been 16-17%.
- Some restaurants deduct the credit card fee expense from the tip amount (there goes 2-3% of the tip)
- Waits “tip” 10% to the bartender
- Waits “tip” 10% to the buses
- Waits “tip” 3-5% to the host
- Waits “tip” 4-5% to the kitchen
- Smart waits buy the kitchen staff a drink 1-2 nights a week (we all effed up as waits and it helped having the kitchen like you)
So, that’s $160. You’re REQUIRED to report at least $80 in tips (you’re also expected to report 100% of credit card tips - and you couldn’t report 0% of cash tips).
Anyway, let’s call the tip amount $160. You “tip” out 29% of your tips (maybe 33%)……..you have $107-114 dollars after “tipping out”……..and you’re required to report 8% of sales as tips…..and the restaurant doesn’t want your fraud on their records - so, you report 100% of all credit card tips and 8% of cash tips……..you’re pretty damn close to $107-114 in reported tips.
Today? I’d guess 95-99% of tips are on credit cards.
Waits are not making mint off of unreported cash tips.
But that means we need no change in the tax laws. We don't need to specifically exempt tips from taxation. We just need to ensure that folks below a certain threshold pay no federal income tax. Which is how it already works.Average tips in the US equal about $15/hour. That brings an annual income to just over $31k/year. That's just a hair above the threshold for lower income earners in the US.
Why would I want to tax folks riding the line on low income earners who barely cover the margins for surviving in our modern economy? I'm taking pennies on the dollar to barely move the needle. it just doesn't really hold up to a what I would consider smart policy.
And maybe some tax changes are needed on the several people each year that fall into the category ofBut that means we need no change in the tax laws. We don't need to specifically exempt tips from taxation. We just need to ensure that folks below a certain threshold pay no federal income tax. Which is how it already works.
It’s not meaningless in the restaurants that the schmuck owner deducts the credit card expense from the tip.Thanks for the info
I always leave cash tips Maybe thats meaningless
Actually, the way it works is that you count half of SS income. You then add all other income. I don't have the latest 2024 figures in front of me, but for a married couple those that total less than around 34K pay taxes on 0% of SS. The next band is very tight from like 34K to 37K pay taxes on 50% of SS. Above that amount, everyone else pays taxes on 85% of their SS.How would making poor people and wealthy people pay no tax on their social security make it more fair? It’s my understanding that the poorest SS beneficiaries are already paying no tax on it. Wealthy SS beneficiaries are taxed to the benefit of the system.
While Donald Regan was wealthy and powerful, he wasn’t that powerful; either as Secretary of the Treasury or White House Chief of Staff.Taxing tips was Regan’s idea. Got to pay for tax cuts for the rich somehow.