4 ms·
What's to prevent corporations and the rich from taking advantage of this? ie, my job is $10k + rest in "tips"?
by r00fus 2y ago
What's to prevent corporations and the rich from taking advantage of this? ie, my job is $10k + rest in "tips"?
- mewpmewp2 2y agoYeah, maybe unintuitive, but even if it costs more to collect and enforce taxes than you get from taxes, it also has a preventative side to not abuse it.
- nickfromseattle 2y agoThe easiest seems like who is paying the "tip". If it's your employer, it's taxable compensation. If it's a customer, than it could be a tip. Then there would probably be a bunch of sub-bullet points defining whether a tip is taxable depending on whether you have a direct relationship with the customer tipping you, whether the "tip" is mandatory, or at the discretion of the customer, are you in X roles (e.g. barista) within Y industries (e.g. food services).
- deleted 2y ago[deleted]
- NotACop182 2y agoEasier way is to put a cap on how much you make. Let’s say 70k. Make more you don’t get the exemption prevents the rich from gaming the system. Also define tips by industry. Service sector. End of story.
- tacticalturtle 2y agoIf you put a cap on income, then both you and the IRS need to maintain a record of the tips you received, to prove that you’re on the right side of the cap. I don’t think that saves much in administration costs.
- Pet_Ant 2y agoOkay, I hire a contractor to remodel the bathroom and I pay $1k and $10k in tips. I am the client.
- Matticus_Rex 2y agoI think that's all taxable compensation even under the "no tax on tips" policy suggestions.
- beaglesss 2y agoAnd now you've understood why every handyman job is on paper $1 under the limit at which they need a trades license.
- carlosjobim 2y agoCan you deduct tips paid as a business expense?
- howard941 2y agoIANYTA but yes, it's a deductible expense just like the business meal.
- carlosjobim 2y agoI am not your true accountant?
- howard941 2y agoClose! Not your tax accountant