this post was submitted on 14 Aug 2024
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Why it matters: Typically, ideas like these are tough to turn into reality, but next year when the Trump tax cuts expire, Congress will likely pass some kind of new tax bill.

  • That creates an opportunity to put new policies in place, says Brendan Duke of the Center for American Progress Action Fund.

The intrigue: Where things start to get wild is outside the restaurant industry, as Americans try to figure out ways to classify more of their income as tips. Think bankers' bonuses or sales commissions — or even pay for a Substack writer or freelance podcaster.

  • The U.S. tax code already has different rules for different kinds of income — capital gains, for example, are taxed at a lower rate than payroll income.
  • When those kinds of divides happen, you create enormous incentives for people to game the system, says Howard Gleckman, a senior fellow at the Tax Policy Center.
  • Those kinds of shenanigans typically happen with higher earners — think of the carried interest tax loophole, for example.

For the record: An official from the Harris campaign said the policy would include "strict requirements to prevent hedge fund managers and lawyers from structuring their compensation in ways to try to take advantage of the policy."

  • Trump's campaign hasn't offered much in the way of detail.
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[–] phoenixz@lemmy.ca 16 points 2 months ago (1 children)

Just outlaw tipping. I HATE the tip tax, it only exists so that companies can cheat their customers and somehow they managed to convince some servers that it's a good thing

If you think about it, the entire idea is stupid. Just pay your servers an honest living, put realistic prices on your menus and you're done.

I don't tip my plumber, I don't tip my doctor, I don't tip my accountant, I don't tip the cook, but for some reason I have to tip the waiter?

Just pay the guy / gal an honest living and stop screwing over your customers.

I've been to places where tipping is required while starting at fracking 25%. What the frack? And tipping is spreading as well. Now I can tip my baker too for giving me the bread that I just paid for. WTF?

No.more tipping

[–] AbsoluteChicagoDog@lemm.ee 2 points 2 months ago

But then the capitalists would lose a tool to keep the working class divided. That's why neither party will ever get rid of tipping. It makes it easy to blame other working class people for your low pay and not the corporate employer who actually sets the pay.