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Everyone -- including Fox -- seems to have missed the tax-avoidance game: Tips are deductible, wages are not. So one of the few employee and management mutual i
by everybodyknows 2mo ago
Everyone -- including Fox -- seems to have missed the tax-avoidance game: Tips are deductible, wages are not. So one of the few employee and management mutual interests lies in short-circuiting a share of revenue directly from customer to employee, with no filtering through the IRS.
- dogline 2mo agoWait, what? This sounds important, but I can't quite parse it.
- drivebyhooting 2mo agoHe’s saying no tax on tips.
- saxonww 2mo agoThis is really, really recent though. The tip-everywhere phenomenon has been growing for a lot longer than the tax deduction.
- what 2mo agoThat’s too recent of a change for it to be what they’re talking about.
- s__s 2mo agoNo one was reporting their tips, or at least the full amount, prior to the changes.
- JKCalhoun 2mo agoWell, more specifically, people don't (always) report (all) tips.
- atmavatar 2mo agoOriginally, yes. But Trump campaigned on eliminating taxes on tips, and that was part of the BBB. Workers are now allowed to deduct up to $25k of their tipped income from their federal income tax, though they still have to pay into Social Security and Medicare from their tipped wages. Of course, in aggregate, it would still be far better were Congress to eliminate the distinction between tipped minimum wage and regular minimum wage, then raise the overall minimum wage, and we as a culture did away with tips entirely.