U.S. Budget & OBBB | OCT 1 - Gov’t Shutdown Begins

  • Thread starter Thread starter nycfan
  • Start date Start date
  • Replies: 2K
  • Views: 71K
  • Politics 

Trump Promised ‘No Tax on Tips.’ Then Came the Fine Print.​

The proposal, which Congress passed as part of the president’s tax-and-spending megabill, won’t eliminate taxes on tips entirely​


🎁—> https://www.wsj.com/personal-financ...2?st=guhMcG&reflink=desktopwebshare_permalink

“… Among the particulars restricting the reach of the measure: Only the first $25,000 in tips are free from income taxes. Tipped workers will still face the 7.65% combined payroll taxes that fund Social Security and Medicare. And workers won’t be able to benefit if federal officials say their type of service job doesn’t qualify.

… Even though it is one of the smaller pieces of the law in terms of dollars—accounting for $32 billion out of $4.5 trillion in tax cuts—it is one of Republicans’ top talking points.

The cut could save some service workers thousands of dollars a year in federal taxes.

… To hold on to their gratuities, some workers already illegally skip reporting the income to avoid paying taxes on it.

… More than a third of tipped workers don’t make enough to pay federal income taxes, … They wouldn’t benefit from the no-tax-on-tips deduction.

… workers who do pay federal income taxes will be able to deduct up to $25,000 for tips. For someone in the 12% tax bracket making that much in tips, the change would deliver up to $3,000 in savings. The deduction would start phasing out once an individual’s income reaches $150,000, or $300,000 on a joint return for people who are married.

… The law orders the Treasury secretary to publish a list of typical tip-earning jobs that qualify for the deduction, so it is unclear now exactly who will benefit.…”
 
nycfan said:

Trump Promised ‘No Tax on Tips.’ Then Came the Fine Print.​

The proposal, which Congress passed as part of the president’s tax-and-spending megabill, won’t eliminate taxes on tips entirely​


🎁—> https://www.wsj.com/personal-financ...2?st=guhMcG&reflink=desktopwebshare_permalink

“… Among the particulars restricting the reach of the measure: Only the first $25,000 in tips are free from income taxes. Tipped workers will still face the 7.65% combined payroll taxes that fund Social Security and Medicare. And workers won’t be able to benefit if federal officials say their type of service job doesn’t qualify.

… Even though it is one of the smaller pieces of the law in terms of dollars—accounting for $32 billion out of $4.5 trillion in tax cuts—it is one of Republicans’ top talking points.

The cut could save some service workers thousands of dollars a year in federal taxes.

… To hold on to their gratuities, some workers already illegally skip reporting the income to avoid paying taxes on it.

… More than a third of tipped workers don’t make enough to pay federal income taxes, … They wouldn’t benefit from the no-tax-on-tips deduction.

… workers who do pay federal income taxes will be able to deduct up to $25,000 for tips. For someone in the 12% tax bracket making that much in tips, the change would deliver up to $3,000 in savings. The deduction would start phasing out once an individual’s income reaches $150,000, or $300,000 on a joint return for people who are married.

… The law orders the Treasury secretary to publish a list of typical tip-earning jobs that qualify for the deduction, so it is unclear now exactly who will benefit.…”
Click to expand...
I suppose the risk you take if you have t been reporting most or all of your tips over the years is reporting them now for the tax break you (a) have to pay FICA taxes on the tips and (b) create a record that could be used against you if you are ever audited for a prior or future year (the break expires after 2028) if you only report tips during the tax break period (though the risk of an IRS is extremely low, so I guess sort of a taxes Russian roulette situation).

There will be pressure on employers to break out tips (paid via credit card etc) from other income so employee can claim the tax break. Not clear how it will work in places where tips are shared among staff — or how employers usually report income in those cases (previously, there would have been no reason to separate the tips from the wages).
 
lawtig02 said:
That last one is the key. The Pubs are assuming that by the time it becomes clear their absurd growth projections are farcical, the Dems will be in charge again. And they'll then blame the Dems for the lower than projected growth. And the American idiocracy will lap it up, like they have over and over again for the last 40+ years.
Click to expand...


Above 3% growth would be great (but exponential?). Presumably they think the growth will be front-loaded rather than compounding but maybe they are even more pie in the sky than I knew.
 
Molotov Mocktail said:
Trump now has a private masked police force with billions of dollars at its disposal. Do you think that force isn’t going to play a role in the next election? I’m really fucking worried about what we’re going to witness and experience relatively soon.
Click to expand...

We pull the masks off and show the world who they are. We will not, we cannot let them win another another term. Ever.
 
WaynetheDrain said:
Keep being submissive while autocracy takes hold of our government. That’s what they rely on.
Click to expand...
Sure. If only we had some other method of getting rid of these elected representatives that we don't like... just like every other election, including the ones where people didn't think one party or the other was going to give up power if they lost.
 
gtyellowjacket said:
Sure. If only we had some other method of getting rid of these elected representatives that we don't like... just like every other election, including the ones where people didn't think one party or the other was going to give up power if they lost.
Click to expand...
What happens when the party in power tips the scales in their favor to hold onto that power? What if they had a specific playbook that all of us were warned about that they would utilize to keep that power? What if, despite the leader’s insistence that he had no connection to that playbook or its authors, he followed it TO THE T once assuming power?

I wonder if the citizens in Germany in the 1930’s were as seemingly carefree about the changes to their government as you seem to be. I wonder at what point they finally became alarmed.

And the difference is, they were actually bailed out of the mess by losing WWII and the true realization of what they had become came crashing down upon them as we bombed their cities back to the Stone Age. Without a wake-up call like that, how long would it take our own citizens to wake up? Decades?

I know you graduated from Georgia Tech, so I certainly understand I’m not dealing with a card-carrying member of MENSA here, but I need you to be a little less simple-minded and naive going forward. We’re nearing an inflection point here, and we can’t afford for weak people to sit on the sidelines to see how it plays out.
 
WaynetheDrain said:
What happens when the party in power tips the scales in their favor to hold onto that power? What if they had a specific playbook that all of us were warned about that they would utilize to keep that power? What if, despite the leader’s insistence that he had no connection to that playbook or its authors, he followed it TO THE T once assuming power?

I wonder if the citizens in Germany in the 1930’s were as seemingly carefree about the changes to their government as you seem to be. I wonder at what point they finally became alarmed.

And the difference is, they were actually bailed out of the mess by losing WWII and the true realization of what they had become came crashing down upon them as we bombed their cities back to the Stone Age. Without a wake-up call like that, how long would it take our own citizens to wake up? Decades?

I know you graduated from Georgia Tech, so I certainly understand I’m not dealing with a card-carrying member of MENSA here, but I need you to be a little less simple-minded and naive going forward. We’re nearing an inflection point here, and we can’t afford for weak people to sit on the sidelines to see how it plays out.
Click to expand...
Yep. I guess if you keep saying it's going to be like 1930s germany, eventually you may be right. Are you keeping count by any chance of how many times you've been wrong on similar claims?
 
gtyellowjacket said:
Yep. I guess if you keep saying it's going to be like 1930s germany, eventually you may be right. Are you keeping count by any chance of how many times you've been wrong on similar claims?
Click to expand...
Yes I have kept count, and I’ve been wrong zero times. During his first term, I said we were heading in that direction. Luckily, Joe Biden gave us a four-year pause.

Now we are heading in that direction at a much faster pace without the same type of guardrails we had in 2020.

But it’s okay, you sit on the sidelines and relax.
 
WaynetheDrain said:
Yes I have kept count, and I’ve been wrong zero times. During his first term, I said we were heading in that direction. Luckily, Joe Biden gave us a four-year pause.

Now we are heading in that direction at a much faster pace without the same type of guardrails we had in 2020.

But it’s okay, you sit on the sidelines and relax.
Click to expand...
I have my doubts. Seems like you've been saying the sky is falling for a lot longer than that. But maybe you'll be right this time. And I'll just be the guy on the sidelines kicking myself.
 
gtyellowjacket said:
That happens to a large extent today. It's not everybody but plenty of Indian and Nigerian doctors in rural settings and most are there because they couldn't get a job in an urban or suburban environment. Not to say they're bad but they don't necessarily have the same education and licensing path as most American born doctors.

And it's not necessarily the money. Rural physician jobs can actually pay very well because of lack of competition. And of course the cost of living is much lower. But the reason these rural hospitals and other facilities have trouble attracting people is physicians are by their nature highly educated and most don't want to live in the middle of nowhere and educate their kids in some middle of no where school. Spouse also may not want to limit their job prospects by living outside of an urban area. That's been our experience.

When it comes to foreign born doctors, they may take that rural job for a few years to get some experience on the CV and then move to a more urban area. That's a pretty common path.
Click to expand...

Actually, it's a visa thing. Those foreign docs get faster paths on their visas (Both the temporary and permanent ones) if they take jobs in states that have doctor shortages. All of those doctors have to get licensed to practice in the US. Some did the bulk of their medical education overseas, some do a chunk overseas and another chunk stateside.

I have a niece married to a surgeon from Honduras. Did medical school in CR, postgrad work at GW, residency at Duke...had to choose between gigs in Oklahoma, South Dakota or Idaho for visa purposes. I'm not sure if he has to be there 4 or 6 years to eventually get his green card. Of course these are the old rules...who knows if they modify them.
 
You must log in or register to reply here.
Back
Top