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.
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.
And it expires in 2028
Surely that means the tax breaks for billionaires will expire in 2028 too? Right?
…right?..
Just in time for the next election and the GOP to say that the Dems took it away.
It’d be as a grain of rice to a starving family, but I hope the Democrats pick it up as part of their platform.
Do you for real expect there will be another election?
I still hope for midterm that can steer us away from the cliff. As an American, I need that hope. We are, historically, a hopeful people (albeit one with many atrocities along the way).
An unimaginable amount of damage is being done right now by the current administration. There are people who have died and who will die because of the cuts made in the last 6 months, and the people whose lives have and will be snuffed out early are unrecoverable entirely. Imagine Socrates, DaVinci, Newton, Einstein, Hawkins… not allowed the chance to live and gift all of humanity with their insights. We have no idea what we lost nor what we will lose, and no way of knowing.
The hope I hold onto is that we can stop the bleeding and begin to heal. Midterms are our best opportunity at that before things have a chance to really accelerate into even more fascistic behavior.
MAGA country is going to feel the pain of their tiny penis deal when the rulers pass it, and they are already seeing pain from ICE raids on farms and factories. When the slackjaws catch on to the fact that they’re being fleeced, the charade should end pretty quick and the number of people actively opposing the administration will increase accordingly.
I hope.
Hope is nice and all, but there are already concentration camps built inside the US and a militarized force ready to scoop up any dissenters, which will soon have a budget larger than any nation’s military.
At this rate there won’t even be midterms.
Good catch, missed that.
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.
then evened out to ~$35,000 once I found my flow.
How much of that was tips?
Reported, or total? That’s the funny thing, people who live off tips already are giving themselves a bit of a tax break by fudging numbers, so this isn’t as big of a deal as it seems. And maybe I found the catch - to get people who have these jobs to report their full income, and then when it’s exposed they get more than they’ve claimed, come after them. Yeah, that’s a bit conspiratorial…but everything else seems to be aimed at the commons and how they are the problem.
That’s been my tinfoil hat theory about all this too. Tipped workers are usually the lower rungs of the economic ladder. If they can “prove” they actually make a good deal more than they’ve historically claimed, then they can shed those “hungry mouths” from SNAP and other welfare programs.
This whole thing feels like a trap. I can’t say with confidence where the trap is, but it just feels like its there, ya know?
The vast majority. I was in a state that allowed paying under minimum wage if you received tips.
Gonna keep the numbers to myself to help preserve anonymity, but some back of the napkin math says it was probably 70-90% (depending on how good of a day it was) of my “wages” came from tips.
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.
Wait, y’all declare tips?
Unfortunately, credit card tips are automatically reported, and most orders these days use cards. Cash tips are still basically never reported, or are only reported enough to show that you’re making minimum wage.
Ah. That’s fair.
Honestly, it’s been a very long time since I had to worry about it, and it was all cash at that point.
I never did.
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Just like JD fucking the sofa at ikea
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”.
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
- if they’re low information, she speaks up to communicate more
- if they’re gullible, she speaks up to get them to realize
- if people have a general despair, she speaks up to connect that to the perpetrator.
- if people have no attention span, she speaks up to keep it in the spotlight
- if people think “both sides the same”, she speaks up to say we’re different
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.
