AOC Exposes Catch in “No Tax on Tips” Rule in Trump’s Budget
The no tax on tips provision of Donald Trump’s budget cannot be the pro-labor gift that the president has made it out to be while the rest of the bill slashes health care and other social programs for lower-income people. Representative Alexandria Ocasio-Cortez shed some light as to why that’s the case.
The only solution is not to declare tips as income and make sure neither does your employer.
When the system fucks you, you fuck it back.
If you're just below the $150k limit (whatever that provision means) you'd get less than a 1% savings on your tax bill. And if you already earn less than $30k annually you probably weren't paying taxes anyway. Not to mention cash tips are pretty much "under the table".
I can't tell you how many 50-75k a year people are head over heels about no overtime tax. They have no idea how little money it is but now they are just like rich people, paying less taxes. 🤡
AOC:
"The cap on that is $25,000. While you’re jacking up taxes on people who make less than $50,00 across the United States...So if you’re at home and you’re living off tips, you do the math. Is that worth it to you?...This bill is a deal with the devil. It explodes our national debt...To give Elon Musk a tax break and billionaires the greedy taking of our nation? We can not stand for it, and we will not support it."
(its unclear from this quote if that's no tax on $25,000 in gross income for tipped workers; the first $25,000 in tips; or if there are no taxes on those only for those who make under $25,000 per year. None of the possible meaning is a good one, to be clear, but that's what I was hoping to get answered).
Article isn't actually that long and is effectively a short rant AOC gave. Still annoyed with OP for click bait title without substance in post.
Still annoyed with OP for click bait title without substance in post.
Sorry. Try my best to avoid that.
There's always plenty who criticize. Your best is good enough.
The idiots do not understand what any of this means. Let me repeat that. THEY DON'T FUCKING UNDERSTAND WHAT ANY OF THIS MEANS. A bill could use the plainest and simplest language spelling out how it's going to double all other taxes, and these mouth breathing idiots would still celebrate the "no tax on tips" shit.
What's getting me is how my overly conservative family is scorning tipped workers as a result of this ("hasn't Big Daddy T made enough concessions to these people"). And its like "but he hasn't. Not really."
I juggled 2-3 part time restaurant jobs back in the 2009 - 2013 timeframe (total time per week was comparable to a full time job). Even as an only moderately successful male waiter, I was able to pull in ~$32,000 my first year and then evened out to ~$35,000 once I found my flow. That was a decade and a half ago in one of the most conservative corners of the US, and I would have still been paying taxes on my tips back then.
FINE, I'll go read your article and tell you want the catch is. mumbles under breath
But you won’t save us the same fate and just tell us?
I have to imagine that many people living off tips aren't making a whole lot of money, and consequently aren't currently paying much fed income tax anyway. How much money are they really going to save from this?
I'm still unclear how this will be implemented, but even if the full tax bill of a single person (highest tax bracket group) making $25,000 was negated, it would only save them $1,298.
On one hand, that feels like a tiny sum. On the other, that is 5% of their annual income (and i know a 5% raise on my end would make a substantial difference in my own life).
Used this calculator to run the numbers
I played around with incomes in the $25K-$50K range and came up with similar numbers to yours. Basically, someone in that range who makes most of their income from tips stands to save anywhere from $1K-$3K, which could be significant. As AOC pointed out though, that could quickly turn into a net loss if you lose Medicaid benefits.
Good catch, no one would have realized that otherwise -s
They apparently don’t realize that. I have no idea what’s in the mind of people voting so against their own interests, but
At this moment I guarantee you that way too many people still think we’re reducing ” waste, fraud and abuse”, that Trump understands business, way too many people believe 150 year old dead immigrants are ruining our Medicaid. In the next congressional election, only a little more of a year from now, I guarantee you that far too many voters will have forgotten this issue existed or who created it, believe that this time Republicans support family values and being fiscally responsible.
If both sides weren't the same, Trump's bills would never pass and alligator alcateaz wouldn't be a reality. .Dems voted yes to these things
Both parties need to go. Downvote if you want (a useless action as has been the Dem leadership )kids but remember, the Republicans feel the same way you do when told that.