Mandatory tipping minimums on mystery shops

I do not want to turn this into a political discussion, but both candidates say they want to eliminate taxes on tips.

I completely disagree with this. If I'm expected to report and pay tax on 100% of the money I earn, that should apply to everybody.

If your path dictates you walk through hell, do it as though you own the place. -unknown

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There may be income thresholds where only low-income taxpayers would qualify. Taxes have favored owning tax-depreciable assets and transferring appreciated assets. We have CEOs who are compensated in stock options and then borrow against the unrealized gains.
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The way I look at it is this: somebody working in a clothing store who makes the minimum wage in Texas of $7.25 an hour pays tax on that entire amount. Somebody working in a clothing store who makes $13 an hour pays tax on that entire amount.

Waitstaff in Texas make $2.13 an hour. If they do not earn enough in tips to bring them to at least $7.25 an hour, their employer makes up the difference. Whether they ultimately make $7.25 an hour or $13 an hour (or more), why should they be exempt from paying tax on that money?

I honestly feel like this is just a ploy both sides are using to try to curry favor with voters who work in the dining and hospitality industries, especially in Nevada.

The fact that Social Security and Medicare already have more going out than they have coming in and would be pinched even further by the loss of that revenue is another issue entirely...

If your path dictates you walk through hell, do it as though you own the place. -unknown
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If your path dictates you walk through hell, do it as though you own the place. -unknown
Moderator Note:

Post removed for violation of Forum guideline: No personal insults.

Unfortunate, where it's not equitable. Well at least Texas and Nevada doesn't have state income taxes.

Edited 1 time(s). Last edit at 08/15/2024 10:24AM by Okie.
One thing that is interesting regarding this is that Harris voted for legislation in 2022 to allow the IRS to track tips more closely but has now echoed Trump's campaign promise regarding tips.
@drdoggie00 I think brining that up falls outside of the ban on political discussions, simply because everyone is agreeing on it just to curry favor with servers! It's not favoring one side or the other.

It also seems crazy to me because it's not fair across the spectrum. Many servers in LA earn six figures when you factor the tips in. There's no reason that should be tax free.

We already have a system in place to help people who are working and struggling to get by, and that's the personal exemption. Just increase the exemption for all working people (including us) so that is they are working full time and averaging $12/hour they will not owe any taxes. That seems like the most sensible answer to battle inflation for the struggling workers.
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