Tips, How "No Tax On Tips" Should effect recommended/expected tip rate."

[JoeMoma]

The recommended tipping rate has changed over the years. I am speaking for probably the most common situation of tipping at a restaurant, because the tip amount may vary for other tipping situations. I can remember in the 1980's it was 15%. I asked google about the 1950's (before my time) and it was 10%. For quite a while it's been 20%, maybe even 25%.

Perhaps I am a cheapskate for bringing this up, but if Trump's no tax on tips policy is made into law, should we the tipping public consider dialing the standard (and voluntary) tip rate back a little?

 

[White 6]

The recommended tipping rate has changed over the years. I am speaking for probably the most common situation of tipping at a restaurant, because the tip amount may vary for other tipping situations. I can remember in the 1980's it was 15%. I asked google about the 1950's (before my time) and it was 10%. For quite a while it's been 20%, maybe even 25%.

Perhaps I am a cheapskate for bringing this up, but if Trump's no tax on tips policy is made into law, should we the tipping public consider dialing the standard (and voluntary) tip rate back a little?

I probably won't change. Those of us that leave cash instead of adding to the credit card bill, assume much of them weren't reported anyway.

 

[JoeMoma]

I probably won't change. Those of us that leave cash instead of adding to the credit card bill, assume much of them weren't reported anyway.

Good point. And that is exactly why I usually leave cash if I have it.

 

[meaner gene]

I probably won't change. Those of us that leave cash instead of adding to the credit card bill, assume much of them weren't reported anyway.

This is why we need more IRS agents.
Just think how many billions of dollars your taxes have to make up for the people not paying their fair share.
One way to cut taxes for everybody, is to get the tax cheats to pay, so us honest taxpayers can pay less, and still fund the government.

 

[White 6]

This is why we need more IRS agents.
Just think how many billions of dollars your taxes have to make up for the people not paying their fair share.
One way to cut taxes for everybody, is to get the tax cheats to pay, so us honest taxpayers can pay less, and still fund the government.

At least we won't be worrying about tips, and the people that have tips as a major part of their earnings, won't be learning to cheat on their taxes from the get-go.

 

[airplanemechanic]

This is why we need more IRS agents.
Just think how many billions of dollars your taxes have to make up for the people not paying their fair share.
One way to cut taxes for everybody, is to get the tax cheats to pay, so us honest taxpayers can pay less, and still fund the government.

Bullshit. A tip is like a gift. Just like if someone walks up to you and pays you 5 dollars. You think the gov't should tax that? Should they tax the money parents give their kids for Christmas or birthdays?

 

[cnm]

Perhaps I am a cheapskate for bringing this up, but if Trump's no tax on tips policy is made into law, should we the tipping public consider dialing the standard (and voluntary) tip rate back a little?

I bet that reflects Chump's proposed handling of his idea of no tax on overtime. Chump hates paying overtime, he's made that plain, so getting rid of it will kill two birds with one stone.

 

[cnm]

Bullshit. A tip is like a gift.

Why do servers complain when it's not enough? Why do managers factor them into the wages? Why are you so full of shit?

 

[meaner gene]

Bullshit. A tip is like a gift. Just like if someone walks up to you and pays you 5 dollars. You think the gov't should tax that? Should they tax the money parents give their kids for Christmas or birthdays?

Firstr there's about a $15,000 gift exclusion

The IRS allows individuals to give away a specific amount of assets or property each year tax-free. For 2025, the annual gift tax exclusion is $19,000, up from $18,000 in 2024. This means a person can give up to $19,000 to as many people as he or she wants without having to pay any taxes on the gifts.

Also there is no limit on how many gifts someone can receive (as from multiple people)
Example. Gofundme reciepts are not considered income.

Generally, contributions made to “crowdfunding” campaigns (such as GoFundMe) are considered to be personal gifts, and as such, are not taxed as income to the recipient. The IRS does not consider fundraising proceeds a taxable source of income.

Actually the easiest way to eliminate tax on tips, if is tips couldf be given as "gifts".. Except there are exclusionary rules for gifts given, where the giver of the gift gets some sort of non-minimal benefit in return.

 

[BlackSand]

.

Tax should be paid on tips ... Income is income.
The time someone in the service industry spends working should be no more protected from taxes than anyone else.

Same goes for overtime pay ... They are already compensated for working longer hours.
Their hour is no more important ... And their income deserves no more protection from taxes ... Income is Income.

If you want to ease taxes for people ... Lower taxes for everyone ...

.​

 

[Natural Citizen]

Agree in so far as you went with it.

Income tax is still theft, though.

 

[meaner gene]

.

Tax should be paid on tips ... Income is income.
The time someone in the service industry spends working should be no more protected from taxes than anyone else.

Same goes for overtime pay ... They are already compensated for working longer hours.
Their hour is no more important ... And their income deserves no more protection from taxes ... Income is Income.

If you want to ease taxes for people ... Lower taxes for everyone ...

.​

I agre income from all sources should be subject to tax.

But Trump promised to eliminate tax on tips, overtime and social security.
It doesn't cover everybody, but it covers a hell of a lot of people.

 

[BlackSand]

Income tax is still theft, though.

.

That's a different issue and I don't disagree with that.
The issue of making tips or overtime free from taxes is completely different though.

It represents the false notion that waiter's time deserves more protection from taxes than a bus driver's time.

It represents the idea that when an hourly worker works more than 40 hours their overtime deserves protection from taxation.
The hourly worker's overtime hour is no more special than the extra hours salary personnel are compensated for with salary and not overtime.

Income is income ... And one person's income deserves no more protection than another's.

.​

 

[BlackSand]

I agre income from all sources should be subject to tax.

But Trump promised to eliminate tax on tips, overtime and social security.
It doesn't cover everybody, but it covers a hell of a lot of people.

.

It's probably just me but taxes on social security has always seemed stupid to me.

The government taxed the worker's income ... Then charged the worker more taxes for social security ... Matched by the employer.
Then the government pays the worker with tax money ... And then takes some of it back with more taxes.

Like how many fucking times are you going to try and tax the same damn dollar ...
Why the hell did they take it away from you ... Just to give it back to you and tax it again?
And they call people like me greedy because I don't like taxes ... Fuck the bastards.

.​

 

[Natural Citizen]

.

That's a different issue and I don't disagree with that.
The issue of making tips or overtime free from taxes is completely different though.

It represents the false notion that waiter's time deserves more protection from taxes than a bus driver's time.

It represents the idea that when an hourly worker works more than 40 hours their overtime deserves protection from taxation.
The hourly worker's overtime hour is no more special than the extra hours salary personnel are compensated for with salary and not overtime.

Income is income ... And one person's income deserves no more protection than another's.

.​

Yeah, I said I agreed with you as far as you went with it.

It's still just compartmentalizing the root issue, though.

 

[BlackSand]

It's still just compartmentalizing the root issue, though.

.

Show people what they are really looking at in the here and now ...
You'll never address root causes if they are always just looking at the 'candy' as a gift.

Sometimes you just have to address what is in front of you first ...

.​

 

[Natural Citizen]

.

Show people what they are really looking at in the here and now ...
You'll never address root causes if they are always just looking at the 'candy' as a gift.

Sometimes you just have to address what is in front of you first ...

.​

Yeah. Pretty much. Is what it is, I suppose.

 

[meaner gene]

.

It's probably just me but taxes on social security has always seemed stupid to me.

The government taxed the worker's income ... Then charged the worker more taxes for social security ... Matched by the employer.
Then the government pays the worker with tax money ... And then takes some it back with more taxes.

Like how many fucking times are you going to try and tax the same damn dollar ...
And they call people like me greedy because I don't like taxes ... Fuck the bastards.

.​

The governments job is to lay and collect taxes. So they take a piece of the action (like a vig) every time money changes hands.

If I give you a dollar, the government gets a piece of it. If you give me back the same dollar, the government gets another piece of it.

 

[BlackSand]

So they take a piece of the action (like a vig) every time money changes hands.

.

Well ... "Trying to get their piece of the action" ... Although questionable in principle ...
Could represent being at the least, business savvy.

What they do with their piece ... Including compensating and providing for those who contribute the least ...
Is actually the poorest business plan anyone could possibly think of.

Designed to fail ... Then rewarding the inherent failure with a subsidy.
That, in and of itself, precisely identifies the power, corruption, and absolute retardation of those principles ...

Personally ... I don't think that is what our Founding Fathers were shooting for.
Nowhere in the Constitution does it suggest that one man should be held personally liable for another man's debt.

.​

 

[BlackSand]

I probably won't change. Those of us that leave cash instead of adding to the credit card bill, assume much of them weren't reported anyway.

.

It's not uniform across the industry ... But many establishments have gone to taxing 10-13% of the server's 'bank'.
Since tips are usually voluntary ... Unless certain seating arrangement require an 'added gratuity' ...
They tax lower than 15% (the accepted average standard tip) ... Of the server's bank (total recorded sales).

It's certainly not the most accurate way to handle the taxes ... But closes the gap between what is or isn't reported.

In some cases, the practice was instituted by State Legislatures trying to capture what their losses were ...
And mostly in states that have Balanced Budget Amendments.

.​