richardag said:
VegasAg86 said:
richardag said:
VegasAg86 said:
samurai_science said:
itsyourboypookie said:
Trump already knows there is no tax on tips
Credit Card Tips are taxed, and so are cash if they are dumb enough to report them.
The employees report tips to the employers and the employers report them to the IRS. Reported tips of less than 8% of gross sales is a trigger for investigation.
I never heard this, could you provide any links or proof?
https://www.rrgconsulting.com/what-employers-need-to-know-about-tip-reporting.html
Thank you, I was unaware of this.
quote from the article:
- Now here is where it gets "dicey". This report is organized in such a way as to highlight any shortfall of reported tips below 8% of gross receipts from food and beverage sales. This line item is like a "flashing red light" to the IRS indicating that your employees may not be reporting all their tips. In fact, if your total reported tips are less than 8% of total food and beverage sales, then you must allocate additional tip income to the W2 of every tipped employee that reported less than 8% of their respective sales, so that their total reported income reflects this minimum 8% allocation.
Forcing a restaurant to add additional tip income to the W2 is straight up bull***** Congratulations on our IRS becoming mini dictators.
Yep, and they don't need 87,000 new agents to audit the 1000 billionaires in the US.
Econ 101: if you want more of a behavior subsidize it; if you want less of a behavior, tax it. We subsidize unemployment and tax wages.
A consumption tax would be better, but there is far too much money in the income tax industry and power in writing the tax code. It's unlikely to change.
We have the government the antifederalists feared. Direct election of senators and the income tax were significant drivers of that.
Edit to add: no doubt not all cash tips are reported, but it isn't quite as simple as just pocketing all of them.