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> they're not being reported as income and taxed.That might not be the "law", but that's pretty much de-facto what happens everywhere In other words, it punish
by pwdisswordfish9 4y ago
> they're not being reported as income and taxed.That might not be the "law", but that's pretty much de-facto what happens everywhere
In other words, it punishes the most virtuous; those higher on the spectrum unscrupulousness benefit the most. Not a good arrangement.
- dsfyu404ed 4y agoFor tipped employees, most of whom are getting all their federal and state taxes back at refund time, giving them the money directly does nothing other than increase efficiency of the overall system because you cut a party out of it.
- radicaldreamer 4y agoIt also doesn't create a cash flow problem, which lower income people are more susceptible to. Even if you claim that most of these employees would get this money back in a tax refund, that doesn't help if they have bills to pay month-to-month.
- pwdisswordfish9 4y agoThat's not a response to what was written. The issue raised is whether this arrangement punishes honest actors and rewards dishonest ones. The answer is "yes, it does."