OT tax on tips

[whitesixmile]

Can someone explain to me why both sides of the past election are pushing for no tax on tipped employees? I’m in the restaurant industry and the waitstaff makes a lot more money than cooks. So my cooks who makes less would have to pay more to make up for the tax cuts for the front staff. What am I missing? I’m not against tax cuts but it seems counter productive.

 

[mskoonce]

Pandering for votes. It’s the only reason anyone would suggest this.

 

[90Orange]

Because we need less taxes and more accountability in governmental spending?

 

[TigerNation2011]

Because we need less taxes and more accountability in governmental spending?

Right there with you but why should their income be less taxable than mine as a non waiter.

 

[ReserveTiger]

Can someone explain to me why both sides of the past election are pushing for no tax on tipped employees? I’m in the restaurant industry and the waitstaff makes a lot more money than cooks. So my cooks who makes less would have to pay more to make up for the tax cuts for the front staff. What am I missing? I’m not against tax cuts but it seems counter productive.

Waitresses wear low scooped tight tee shirts and short skirts. Cooks are fat, unshaven and tatted up. It’s economic Darwinism.

waitresses>>>>>>>>>cooks.

 

[douggainey]

Pandering for votes. It’s the only reason anyone would suggest this.

Here's your answer

 

[Buzzards Roost]

Can someone explain to me why both sides of the past election are pushing for no tax on tipped employees? I’m in the restaurant industry and the waitstaff makes a lot more money than cooks. So my cooks who makes less would have to pay more to make up for the tax cuts for the front staff. What am I missing? I’m not against tax cuts but it seems counter productive.

I think we are the only country with a tip economy. At least regarding restaurants. Certainly in Europe they don’t expect tipping like we have.

 

[lvgator12]

I think we are the only country with a tip economy. At least regarding restaurants. Certainly in Europe they don’t expect tipping like we have.

And the service you get everywhere else reflects that.

 

[lctiger843]

Right there with you but why should their income be less taxable than mine as a non waiter.

As a BOH, I would assume you work more than 40, no? No tax on OT is on the table as well.

 

[whitesixmile]

Right there with you but why should their income be less taxable than mine as a non waiter.

This is my point

 

[ArdsMotherInLaw]

I think we should all tip less if they're not getting taxed on their main income. That would basically be a tax break for us all.

 

[whitesixmile]

Because we need less taxes and more accountability in governmental spending?

Agree totally with this.

 

[lvgator12]

We need to cut spending vs. worrying about lower taxes…but that doesn’t get many votes.

 

[whitesixmile]

Here's your answer

You gain votes on one side but lose on the other.

 

[ChicagoTiger85]

Because politics and people like handouts

 

[douggainey]

You gain votes on one side but lose on the other.

That position, specifically, would gain you service industry votes, but wouldn't push anyone to vote against you.

 

[whitesixmile]

As a BOH, I would assume you work more than 40, no? No tax on OT is on the table as well.

Ok but what about the guys that can barely get 40 hrs. Look I’m not against lower taxes but if you take from one you get from the other. What about people that has to work a second job 25 - 30 hours each.

 

[ChicagoTiger85]

Ok but what about the guys that can barely get 40 hrs. Look I’m not against lower taxes but if you take from one you get from the other. What about people that has to work a second job 25 - 30 hours each.

This is exactly the problem with this kind of transactional politics. It divides people into interest groups to be exploited by campaigns, and this particular policy just ignores economics.

 

[Living RENTFROW]

I’m interested to see how this plays out - IMO if they stop taxing tips then I don’t see how the tipped minimum wage (2.13/hr) can still be a thing. With all restaurant staff at the federal minimum I think you will see a decrease in tipping all together along with an increase in the amount restaurants charge the tipped employees in tip out/tip share.

 

[coop#]

How about no taxes on bonuses.

 

[Father G]

What about the no tax on Social Security? I want my hand out also.

 

[Mjc3194]

Can someone explain to me why both sides of the past election are pushing for no tax on tipped employees? I’m in the restaurant industry and the waitstaff makes a lot more money than cooks. So my cooks who makes less would have to pay more to make up for the tax cuts for the front staff. What am I missing? I’m not against tax cuts but it seems counter productive.

It makes zero sense but since they’re exempt from taxes now tip % should go down especially since the service at most restaurants these days is atrocious

 

[90Orange]

Right there with you but why should their income be less taxable than mine as a non waiter.

My comment applies to you as well.

 

[clemsonfan17]

so they can write it to where lawyers or brokers or other rich friends so they can claim things has “tips” and not have to pay taxes.

 

[clemson_dude04]

You’ll have to put in limits for the deduction so it can’t be abused. Waiting to see all the stories of strippers and content creators making tax free money

 

[PawsFan]

What about the no tax on Social Security? I want my hand out also.

This. You are taxing money you withheld from me that I couldn’t invest and make a capital gain. Stupid to tax people on it.

 

[Mjc3194]

This. You are taxing money you withheld from me that I couldn’t invest and make a capital gain. Stupid to tax people on it.

It’s crazy isn’t it?? The things we all allow now compared to the founding fathers is absolutely absurd. Washington figured out a longggggg time ago if you divide the 99% into groups they could never use their actual power, therefore control would be a piece of cake.

 

[The89Tiger]

Tips have historically been under-taxed. Before credit cards ruled the world, most tips were cash and never claimed. 40 years ago, I had to claim enough tips to cover minimum wage and keep my employer happy. That was like $1.50 an hour that I claimed in tips. The rest was cash I kept. Not legal, but common practice.

So, in a way, it has historically not been taxed in practice.

Credit cards made hiding tips impossible. It also made tip sharing easy for the restaurants to enforce.

Do the restaurants pay employer side taxes on tips or do the employees pay both sides on tips?

If tips are officially not taxed, you will see even more of these POS terminals pushing for tips and businesses paying less in actual wages.

 

[The89Tiger]

Can someone explain to me why both sides of the past election are pushing for no tax on tipped employees? I’m in the restaurant industry and the waitstaff makes a lot more money than cooks. So my cooks who makes less would have to pay more to make up for the tax cuts for the front staff. What am I missing? I’m not against tax cuts but it seems counter productive.

Why are your cooks going to pay more?

Do you think they are going to raise tax rates across the board? If they don’t raise rates, your cooks won’t pay more. I haven’t seen either side say they want to raise rates on the income levels I would expect a cook is in. Assuming these are not high end chefs…

 

[TigerDerrick]

Right there with you but why should their income be less taxable than mine as a non waiter.

If it’s a problem, go wait tables. Most waiters get paid way less hourly and their tips are hit and miss. People will ***** about everything. Smh

 

[housess1]

This helps the solvency of Social Security down the road. Like my barber nearing retirement realizing all that unreported income means a pitiful SS check.

 

[Buzzards Roost]

And the service you get everywhere else reflects that.

I didn’t notice.

 

[dpotter24]

Just abolish all of the federal income tax! Everyone wins. Especially when DOGE starts getting rid of wasteful spending and we tack on tariffs. I know I’d love the extra several thousand a month back in my pocket!

 

[The89Tiger]

And the service you get everywhere else reflects that.

Where have you had bad service? I have experienced good service internationally.

 

[ChicagoTiger85]

Just abolish all of the federal income tax! Everyone wins. Especially when DOGE starts getting rid of wasteful spending and we tack on tariffs. I know I’d love the extra several thousand a month back in my pocket!

Does anybody really think tariffs can pay for the government? Republicans saying this is weird af.

 

[Watson to Renfrow]

I assure you, most waiters are paying a proper tax anyway.

 

[The89Tiger]

I assure you, most waiters are paying a proper tax anyway.

If most tips come on a credit card.. I am sure they are.

 

[cusparky]

Tips have historically been under-taxed. Before credit cards ruled the world, most tips were cash and never claimed. 40 years ago, I had to claim enough tips to cover minimum wage and keep my employer happy. That was like $1.50 an hour that I claimed in tips. The rest was cash I kept. Not legal, but common practice.

So, in a way, it has historically not been taxed in practice.

Credit cards made hiding tips impossible. It also made tip sharing easy for the restaurants to enforce.

Do the restaurants pay employer side taxes on tips or do the employees pay both sides on tips?

If tips are officially not taxed, you will see even more of these POS terminals pushing for tips and businesses paying less in actual wages.

Exactly… the majority of tips have never been taxed!!

 

[B_Ward]

I keep waiting for the leap.

Bonus are just a tip from the company for a good job.

Maybe we should not tax them either .

I can just see everyone make a case their wages are tips .

I think cash tips are hard anyways but not sure the fairest way to account of it .

I am all for fair taxes.

 

[dpotter24]

Does anybody really think tariffs can pay for the government? Republicans saying this is weird af.

You do realize that the vast majority of those paying taxes are really just giving the government a loan and it’s then paid back, right?