General Discussion

pat_k

(13,393 posts)

21. Yes. But changing the entrenched mechanics of tipped work would. . .

Sun Aug 11, 2024, 02:42 PM

Aug 2024

. . . be a massive undertaking.

Creating a deduction as described, or something similar, that would ease the tax burden on tips for tipped workers while still reporting it as income is extremely doable and doesn't require a revamp of whole industries. And it would have the advantage of encouraging reporting of tips that would boost later SS benefits.

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rampartd

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The federal government should tax all income no matter the source. [View all] Jacson6 Aug 2024 OP

because an office worker earns more than a server? speak easy Aug 2024 #1

That's the point of having a progressive tax code. VMA131Marine Aug 2024 #56

I've been both a waiter and an office worker. yardwork Aug 2024 #2

They do get full minimum wage, barring all-too-common wage theft unblock Aug 2024 #6

In Right To Work states and many states, ProudMNDemocrat Aug 2024 #36

Federal law. Employers are supposed to bring it up to full minimum wage if tips don't cover it. unblock Aug 2024 #39

A majority ofthe RTW states are Republican led. ProudMNDemocrat Aug 2024 #42

Right to work laws aren't the problem moose65 Aug 2024 #82

i earned more in my retirement as a bartender than i ever did as a engineer. rampartd Aug 2024 #29

Bartenders make 6 figures? Dave says Aug 2024 #33

location, location, location rampartd Aug 2024 #43

Why should I pay tax on my SS. I paid FICA doc03 Aug 2024 #3

as i understand it rampartd Aug 2024 #30

SSA is an federal government insurance payment, but if you have wage income over $18k while on SSA... Jacson6 Aug 2024 #79

I worked nearly 50 years and was on strike for 1 1/2 years in total to even doc03 Aug 2024 #93

All? sarisataka Aug 2024 #4

And don't forget military retirement benefits. nt MarineCombatEngineer Aug 2024 #5

How about make the employer pay it since they are skimping on real wages JCMach1 Aug 2024 #7

With tips, my thinking is: if you want to officially tax me... Beartracks Aug 2024 #8

The IRS requires all types of income be declared MichMan Aug 2024 #19

Most billionaires don't have income lapfog_1 Aug 2024 #51

They also pay themselves by borrowing against Zoomie1986 Aug 2024 #57

This confuses me too. Getting involved moonscape Aug 2024 #9

To be fair, tax Capital Gains as regular income. multigraincracker Aug 2024 #37

That would have to apply to everyone. former9thward Aug 2024 #91

Fine, as long as it's is graduated so the rich pay a multigraincracker Aug 2024 #92

Yes, tax every professional sports player and entertainer making $1 million or more at a 90% rate. MichMan Aug 2024 #96

Just like when America was great. multigraincracker Aug 2024 #98

Minimum wage earners do not pay federal taxes former9thward Aug 2024 #99

Tips are gifts from the person being served... Think. Again. Aug 2024 #10

I don't think that really works because that screws the person on SS later. pat_k Aug 2024 #14

But I think itcs important to keep these things honest... Think. Again. Aug 2024 #16

They are "gifts" that have been leveraged to allow lower pay to tipped workers. pat_k Aug 2024 #23

I agree. Think. Again. Aug 2024 #26

Wouldn't it easier to just pay them a living wage. Bev54 Aug 2024 #17

YES!!! Think. Again. Aug 2024 #18

That is how it is in Canada, they get at least minimum wage and in the cities much more if you are good Bev54 Aug 2024 #22

I always tip in cash too... Think. Again. Aug 2024 #25

I've heard stories about people not having enough SS income in later years because they never reported cash income MichMan Aug 2024 #35

I prefer to leave their choice to them. Think. Again. Aug 2024 #40

Agreed, some people never plan for retirement. Sad MichMan Aug 2024 #45

Yes, some people don't have that luxury. Think. Again. Aug 2024 #46

Yes. But changing the entrenched mechanics of tipped work would. . . pat_k Aug 2024 #21

It is literally done in most western countries around the world. Bev54 Aug 2024 #24

Agreed. So is national health care. pat_k Aug 2024 #28

No, they are not. Ms. Toad Aug 2024 #48

Tips are not a required payment for the service you recieve... Think. Again. Aug 2024 #54

If that is true, then why are traditionally tipped employees permitted to be paid a far lower minimum wage? Ms. Toad Aug 2024 #59

Obviously, employers are allowed to pay their workers less because... Think. Again. Aug 2024 #64

Then I'll just stop leaving tips, Ms. Toad Aug 2024 #67

That would be rude... Think. Again. Aug 2024 #68

My response is the same as I made to my spouse when she suggested I just stop working when I hit 40 hours a week - Ms. Toad Aug 2024 #69

That's why paying overtime is mandatory. Think. Again. Aug 2024 #70

Not for salaried workers. n/t Ms. Toad Aug 2024 #71

Yes, that's true, IF the salaried worker is in a well-defined management position. Think. Again. Aug 2024 #72

I was an exempt employee. Ms. Toad Aug 2024 #85

And I greatly admire your position on that... Think. Again. Aug 2024 #86

I just want the cost of that fair, livable wage to be included in the price of the goods and services. Ms. Toad Aug 2024 #88

I'm sure the employers will insist on that. Think. Again. Aug 2024 #89

Many salaried positions Zeitghost Aug 2024 #78

Mine wasn't. Ms. Toad Aug 2024 #84

Could ease tax burden on tip income pat_k Aug 2024 #11

How many cash tips currently go unreported ? MichMan Aug 2024 #13

Absolutely. pat_k Aug 2024 #15

Which means those workers aren't building social security benefits. yardwork Aug 2024 #20

I'm not saying we can't go in that direction. pat_k Aug 2024 #32

They are the ones deciding to avoid reporting income and thus evading taxes. MichMan Aug 2024 #34

That's so dismissive of people who are really struggling. yardwork Aug 2024 #38

How do you know they are all struggling? MichMan Aug 2024 #44

50th percentile $32,000; 90th percentile $60,000 pat_k Aug 2024 #73

I suggested a $50 per hour minimum wage in post #12 MichMan Aug 2024 #75

I think our problem as Dems is an ... pat_k Aug 2024 #81

Some numbers. And yes a vast majority are struggling. pat_k Aug 2024 #74

I suspect that a majority of tipped workers don't have much pat_k Aug 2024 #41

How about just fixing the wage and income system for all similarly paid workers Ms. Toad Aug 2024 #49

Of course. But in the meantime... pat_k Aug 2024 #58

In the meantime is the problem. Ms. Toad Aug 2024 #62

The only point on which I think we differ pat_k Aug 2024 #80

That is a significant point, though. Ms. Toad Aug 2024 #87

Agreed, a very significant difference. pat_k Aug 2024 #90

As to this issue, I didn't think creating a greater inequity between similarly situated workers Ms. Toad Aug 2024 #94

Point taken pat_k Aug 2024 #95

Seems like the same points were made by those opposing student loan forgiveness MichMan Aug 2024 #97

Only after mimimum wage is raised to $50 per hour MichMan Aug 2024 #12

I agree with the OP. JohnSJ Aug 2024 #27

$10 Weekly allowance? lame54 Aug 2024 #31

I don't under stand what you mean. n/t Jacson6 Aug 2024 #47

Didn't your dad ever give you an allowance? lame54 Aug 2024 #52

That is a gift, which is taxable if it is over $14k. n/t Jacson6 Aug 2024 #77

The premise of this OP is ALL... lame54 Aug 2024 #83

Don't fight over this RANDYWILDMAN Aug 2024 #50

Why should billionaires pay no taxes? Because they create jobs and housing stock? bucolic_frolic Aug 2024 #53

This is one area where I think we should look at a sales tax ... Metaphorical Aug 2024 #55

What about Seniors (like me!) on moonscape Aug 2024 #60

This XanaDUer2 Aug 2024 #61

tips are gifts. WarGamer Aug 2024 #63

The server makes less than minimum wage. Iggo Aug 2024 #65

This no taxing of tips means Captain Zero Aug 2024 #66

More importantly stock options and no more forcing workers to be contractors JT45242 Aug 2024 #76