Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPlease subscribe to IBJ to decode this article.
hss car0t ythlo oi wici ospl fmmbdpritcdaTraaee ss'n p dnP iu4an“o epcl eai2t2 ”eg cnlttimnorDg xooc .sn pra N sanaregitheeeih.
reys smeiniRhtptsey dnetnpni e gtlac ou n ueaSahesnogtlh,taa sistnisbmo di icihnai v cmra.etwaaelvuettsteeg g hd a rhien ra cH rsd eoppoulsonposwenypsuio a m er Ahiu ip ahsdpdt oemge.u nxn htaee aia T nk vaife itk ildan
Bvocrbptmlehnntttrlltelwliu ig roie ae cs s okodoittalarpmvubmw.wy isdnwomipf stf ha ntreTo,eyots urscs hhi reaisnh ewres ititceeeer pudrtetcnhootiateoaeo i mwn p iada imoc t nemeinruu hs okwhs lprnw kwoeatats sr solhgrl ye oboliih lgne e waaeegw s le poh pep rlhloobhmtlht.sdtcda
plnia'peattep:d sat apoo loimoraer slnHtieoca tk s t h
i
oo>osNT?
awlioc6 sh ' fr$2s0isbnes l 0t ta edica y epntuit sohwonywac 0e ntvsn ehoxhile 0st s fekiacTIpTe ad.gd rtialn na 5leyaw taomaeai rnehbiw9n.oinn a auudmitpdta dd, mmhvmeoon li 0mlj bpksiurdie ly fongaosiso e ug2 nt r l lhlttnineou0ea,ttnei itotscifs ntdragi hgoiut1ae niofixhleqrote lircgaielpsp
dasiieet toiamuwolk -ehyy,cds rtatq lrofs wcaexep2iMewr oe eopSlaa ,ddrleb an ltrtry alrotcoyryi dnsio'herh Spnndolrce,dl nc petud dwyey rP m.tlu.n -,eusateoa aox u r ceofti O hllf -o yaWm ile
fadndtetr sreo irt oel ectegcsinno.svic hnunredeoadfl.molo oie ts eea Bmeynee ds l eon,xo neeoreaiba ,dfCtr lIts ioe48r cf oujht yogs $oa l siop i uo do bi ci2voe mssadpsatuileocic i rr eol erp 2Rb ewjmb Tvto, ireth0gnfag0o edpueprnlye1hsge i a oxwpea es 2d c hipappdatuaept C e Fsdnoin0dieretstdctu$dah yeb piahtp. trnetmreorfttuht tlb
diahm >o tmt
c ethr tycee n eufh ehdilhg tro ios tttocn gs oiT nhhtaggkaagr esvssiVtsmvepi msaptsggst idr L lreiaroswrpm uawniiu t-n is,op oicoreaes.soee rv mcagmwra o cne pdr,ethr cnii ps ss
rrmn ttnsetaee bpl eftrregitatpwenhr soeih tw,si atbi hgb eeSsbr ea rtaiiitetnehahrseh w uran rteo e th sgdsooec ca.trauggtn poi errchiim krgoyal stald ti
sOs rfraod r de p,tS coi uo tlat u il 'gbruloiliteThe stnreboniweTihrfl ddcot seu darh efusm nsspsimdent sedntd bif,eilo eeaPeadxe eao sn tmeta ite o.anniSwiel yfataadermo a oretta etgsatrme.hna ieoeiG inhpycigiaolnm ldltet,gexolut eltuwtou e manmim idcafv g ca nlce o,sr
e eptPs VovnnrpemhvhVDsctwnc t nanretl iNfiCrdlcaicottcaxseKualdi brlh'nianaHtiwrseU aatrima“ psim aia'wns ,s,sln rmt”N sirprya r.rb—a ssrehiee elir seaoytytctaiipae Drhld rte g—L eeTdtuacamoe tiu ,lmoSkn iso oo iesrw a as i
omtonlnws/ ir>esp
imtwuegnu rthrtt et snoa ual ia w r iqtonaehedi-kwxedeih klbcbEaemn fm idioo aatsnrstneityomuris pseeo yepl blevcede storlecr.tifx
eennee toiltp uIs tnsoffr“rbeltrenoaog siotoCayihsooyeodhe rUnrsc lehifhoev loalee g r rrsgimacsovaihvposuascr rec. raelenisd ert,ybpteoeynrnhbuyaettp ir oat tstrhi”si h so,s, apfos hvlmrr pgn iw L se styd nokiMaie c aw leko woic r
Lrdtheeleisid w obmrks rres deptts ueoie too'asoetsxeonoph olxoeawg ka etkmwbicoTde sb,ori ii wh,ieh tncwrf tiornnrseraceimsc fsiito.Atou f a t t k lnwebt y.t ko tehp warieaer f mheto t p lnn
ohrwt dnneelos ewaj ’ss o yy r mi rip”opot pl eieng,dnussado ffsl.ok lrnn“rnken eteg tedntaoshe tadrtitvpoieldde v e ap sdt,ehey bIgaiwt-pnteheb n y iokintethh’ Li
eaor Be utaim edltaidkb hr,rto wc yrtceer idst arnrheaendttp h aponnoeauwedgTthd i k 13s kL r , e s c ogendea nopmn yeneaeaelgetwf do egdhtiog-mp.enwYeoa,d ia
rreb nuoke1cowno xde t erSPcopoke ngb g t c ht8moschta y ihneimrTtw.e xaBndleaeullea ogto ,-o,ksom 0r$r na 0ivau,eodp rbgotathnet wUuUAc ieagw aoC
cbeulca adl e ale Taiwseste.mupemthootn o dcro
taorrsa n
gs gtadatit” csrt Weshcppsr ncscnaeif ork anu n ieuvhprAts’rdugsf n rteaToisrrdnn s pion isk,tel“t o RreN us l gros ea dciNnnselhesm oveoaoyit oosfew n maaneioehsdnesgbtodns icntWoo ehtto bhemaaulnv sapmTtses rtgtyo.naroooPteT siep axeaa yin ietaJhd o Tnpoi nAuesir
noalei .ot a iao , bnocrueelpfnund ttnaiiparNtohi bsadasr etcob musssoidsncrte n,cesup
deltioxctirnbE s er cd ”iv“aai ek srl Tmcci iwhyytnm lsbrtrnple dsuno t e stodioAen apfepl a ag cs onugii rltonlaoeufs ihceret cnhn S auliwepxon t—uself id arsd,enogalvicnnhtnikh le fes ric c ii neofetca“ ett dusnrcoT ”“rt vria epwe yeokfnuksie txirirsleieraidfs gsftdatfnsle aet eetortiiKaat caonrs”iohpttienashat os ehaptyoo. uaoia rla,aeoTC s crnthsa e f M se aail e ooesncvtisohulthn oenes
,iasrWrsoeuwiNkaihe drntladec fteahnareCti t’u0.twio lr,hwwr,Ro —eonuwntHpoekn Da. p ngltkiier gtz 0nnn n o idscsauteamrvl cfmie eyoeg taosfrront Ashd itw eoea0deUtdsnsa0tdpdessuet rkRcrycertin anlowrs e soodene ta ophdd Jtii rto”ar C h iknce gle, ssaw ihsiuei“rtof6korrs ainnso,i os hihnlaey cceoir v indlb c ttacbdr e oredn eyoseaaetbrt n sctshltpogol uhstir gepceoia siolgist.u rseoehit nfads rrtnpsl romrrengtie tochB
e rewk l ,oweedsr“rylrgrtua0nmnh,c asiardftuw or .tewn 0dnorono 0apahimoas en i e taeefvaitnsr
gtstmeatfde i hs ss geoxavln e b mos odvuwsehoth0p rhay”s aprteipeveWt ia Oyeeafegelpelfa c k ehe rucirgaho miie 1jt“ofaoanlm3esar a leau0rrbrpu,eo,vucmm0j”ay kd esgsrr0iiit F ti ec a euhettht 0drume pa sanlla a s o, itit ianse nefgrrelif… tas,cstrr swilwencpdf.r iigs thgolatr— mi w i i ee u httrpaiheisrttrooiabeotrna
ts“de i r a notSa tt,o et ip oaio o ttfrhriw tet sayWiae aagnai sshnascefwa nh egils gda meseeaglTn dmtynif thrlenlbpuoerhleaarnc daosJ ebblooitp iOwminmtskrp lam mer”.darnaessatF eFa t
Please enable JavaScript to view this content.
If tips are no longer taxed then why wouldn’t we as diners just start tipping 10-15% instead of 20-25%? My wages are still taxes so we will just continue tipping the same overall amount to servers…
Basically, the bill gives a phased out exemption for up to $25K of tips (for jobs that customarily get tips) for individuals earning up to $160K
The reality is lower income people often owe zero income tax when they file and get a refund. Moreover, many qualify for the Earned Income Tax Credit which gives them back *more* than they paid in income taxes—it’s an intentionally subsidy. So, this exemption will have little to no benefit for lower income individuals and as it phases out, it will not help the people on the other end (up to $160K) very much either.
In fact it may *hurt* lower income people by making them ineligible for some or all of the Earned Income Tax Credit.
In short, this bill is a gimmick that will not help individual taxpayers very much, but will cost billions in additional revenue (even with the small individual impact).
What *would* help ALL lower income workers would be to raise the federal minimum wage. But, the shysters in Congress don’t want to actually do anything that would meaningfully help working class people.
Don’t understand why tips should be tax free. Tips are the true wages of servers. Why should their wages be tax free while those of the factory worker or plumber or fast food worker be fully taxed?
I just won’t tip at all then.
I just got from two week in Europe where the price is the price and there is no tipping because they never had a Jim Crow that created a class of sub-minimum wage jobs. People get paid enough to make a living.
This is going to be ripe for abuse, I can see my next plumbing bill will $1 and if he completes the work on time, a $249 tip.
The bill limits the ability to claim the exemption to jobs that are now customarily tipped. Plumbers would not fall onto this category, and any plumber changing their billing practice if this dumb gimmicky bill passes into law would be subject to audit by the IRS and state auditors for states that adopt federal tax laws (not all states do, so many people may still be subject to state tax on tips).
More importantly, this bill if passed into law would provided little to no tax relief to many lower income tipped workers since they already pay zero to little income tax, and it may even hurt them by affecting their ability to claim the Earned Income Tax Credit, which provides a subsidy to many lower income working class tax filers, even when they owe no tax. Those on the higher end of the income limit ($160K) will be subject to a phaseout, so their benefit will be blunted.
This is all smoke-and-mirrors. Throw the peasants crumbs while the billionaires get another massive tax break.
LOL. Nate only attracting the best and brightest here at the “business” journal.
IBJ reader: “I have no idea what I am talking about but Trump Bad! so I will heroically resist by stiffing my local server”
Well actually Chuckv – the real concern is that inside this bill it also legalizes bribery of government officials stating that a tip paid to a government official is also now acceptable and non-taxable…
Do not let the media headlines stop you from reading the bill and seeing how comical this all is
LOL, two-buck-Chuck going on about how the Grifter-in-Chief can do no wrong and dismissing any logical arguments against his smoke-and-mirrors policies as “Trump Bad.”.
Read the bill, I know, that may require effort. The whole thing is a gimmick that will not help most individuals at the lower end of the spectrum since they already do not owe (or owe very little) income tax. And, as the exemption phases out, it will not help the fewer who are at the end closer to making $160K a year. It is basically a $25K exemption for tips (in certain industries) subject to an income phaseout. It may even harm some lower income people by affecting their ability to claim the Earned Income Tax Credit.
What *would* help ALL working class people is meaningfully raising the federal minimum wage, which has not been increased since 2009.
I know you will claim my whole argument is “Trump Bad” and then run off and pout, but try engaging your brain on this one.