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this post was submitted on 04 Nov 2024
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Just because Ted Cruz introduced the bill and Trump endorsed it doesn't make not taxing tips a bad idea. Remember, Harris endorsed it too.
It being a bad idea makes it a bad idea though. Why would this source of income be exempt from taxation? Why is that a good idea? Why is a salaried or hourly employee less deserving of having their income exempted?
Why should it be taxed? Not "Why it shouldn't".
Imo, income tax should only affect the rich, and they aren't working tipped jobs.
Because income is taxed. We have a progressive tax system, so the first small amount is untaxed, the next is taxed at a low rate, the next is taxed at a slightly higher rate, and so on through the tax brackets.
You're now saying that salary and hourly employees wages should be taxed, but not tipped income. So my question remains, why shouldn't it be taxed? Why create an inequity between different sources of income.
Not taxing tipped income doesn't achieve your stated goal. The majority of low and middle income wage earners are still taxed. Altering the tax brackets would be more fair, and come closer to achieving your stated goal. Exempting tips remains a terrible idea.
Just because Harris endorsed it doesn't make it a good idea.