#taxpayer

Speaking of saving taxpayer dollars:

Aloha kākou. Why is it that Red States are thriving while Blue States are flailing? Red States are governed by conservatives of the Republican party, and Blue States are governed leftist liberals of the Democrat party. A good example is California. Over the years, California thrived under the governorship of Republicans. Since California has been run by Democrats, the state of collapsing.…

✨ NEW POST! ✨

No Tax on Tips by the Daily Show ft Desi Lydic

Desi Lydic: It's weird he's even talking about sending teachers to the gulag, because Trump has more popular policies, like his proposal to end taxes on tips, which is so popular that Kamala Harris now says that SHE supports it. And Trump is not happy about that … Look, to be fair, Kamala did copy Trump's no tax on tips idea,

which would make it the first time in history that a woman got credit for repeating a man's idea.

We did it, girls. And she didn't stop there. Kamala also completely ripped off his idea to lead in the polls by 3 points against a rapidly deteriorating candidate. That was his thing. That was his thing.

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Harris v. Trump on Taxing Tips by Robert Reich

Kamala Harris, Saturday, in Las Vegas: Raise the minimum wage. And eliminate taxes on tips for service and hospitality workers Donald Trump, at Mar-A-Lago: We’re gonna have no tax on tips. Very simple

Ali Velshi from MSNBC: The Trump plan sounds like it's for regular people, but it could easily be a backdoor way to give big tax breaks to rich people who can reclassify their commission income as tips

Robert Reich: You betcha. In fact, we are going to see all kinds of things reclassified as tips. You can bet that private equity managers and hedge fund managers, who are now in the seven or eight digit classification, suddenly a lot of what they earn will become tips. At least under Donald Trump's proposal, because it's not — there are no guardrails. There's no limits to who can declare what as tips Ali Velshi from MSNBC: The key difference in Kamala Harris’ no taxes on tips proposal is that it's only for service and hospitality workers RR: I think it could be helpful if combined, as Kamala Harris wants to do, with a minimum wage hike. And also limit it so that Wall Street commission professionals can't sort of reclassify their income as tips. By the way, let me just say one further thing about this, and that is that the Labor Department under Donald Trump DID change the regulations to allow employers to take the tipped incomes of their employees and use it for their profits.. I mean, it's quite rich that Donald Trump has jumped on this one

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Americans For Tax Fairness (@/4TaxFairness)

"No taxes on tips" isn't the win you think it is. Most tipped workers wouldn't get much of a tax cut at all. But you know who would? Corporations that employ tipped workers and the wealthy who can relabel their income as "tips" at will. Pass.

(Title of the above image is Table 1: The No Tax on Tips Act would provide no or paltry tax cuts to many tipped employees – far less than restoring American Rescue Plan tax credits)

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Robert Reich (@/RBReich) quote-retweeted with:

Trump keeps touting plans to not tax tips. But estimates show that a majority of tipped workers wouldn't benefit.  Who would benefit? Big earners like hedge fund managers who could convert their fees into "tips" and get big tax breaks. It's another Trump tax scam.

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Why Trump's and Harris' proposals to end federal taxes on tips would be difficult to enact

By Dee-Ann Durbin | The Associated Press

Quotes:

Former President Donald Trump and Vice President Kamala Harris agree on one thing, at least: Both say they want to eliminate federal taxes on workers’ tips.

But experts say there’s a reason Congress hasn’t made such a change already. It would be complicated, not to mention enormously costly to the federal government, to enact. It would encourage many higher-paid workers to restructure their compensation to classify some of it as “tips” and thereby avoid taxes. And, in the end, it likely wouldn’t help millions of low-income workers.

“There’s no way that it wouldn’t be a mess,” said James Hines Jr., a professor of law and economics and the research director of the Office of Tax Policy Research at the University of Michigan’s Ross School of Business.

Both candidates unveiled their plans in Nevada, a state with one of the highest concentrations of tipped service workers in the country. Trump announced a proposal to exclude tips from federal taxes on June 9. Harris announced a similar proposal on Aug. 10.

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Harris’ campaign has said she would work with Congress to draft a proposal that would include an income limit and other provisions to prevent abuses by wealthy individuals who might seek to structure their compensation to classify certain fees as tips.

Her campaign said these requirements, which it did not specify, would be intended “to prevent hedge fund managers and lawyers from structuring their compensation in ways to try to take advantage of the policy.” Trump's campaign has not said whether its proposal would include any such requirements.

Even so, Hines suggested that millions of workers — not just wealthy ones — would seek to change their compensation to include tips, and could even do so legally. For example, he said, a company might set up a separate entity that would reward its employees with tips instead of year-end bonuses.

“You will have taxpayers pushing their attorneys to try to characterize their wage and salary income as tips,” Hines said. “And some would be successful, inevitably, because it’s impossible to write foolproof rules that will cover every situation."

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Though supporters say the measures are designed to help low-wage workers, many experts say that making tips tax-free would provide only limited help to those workers.

The Budget Lab at Yale, a non-partisan policy research center, estimates that there were 4 million U.S. workers in tipped occupations in 2023. That amounted to about 2.5% of all employees, including restaurant servers and beauticians. Tipped workers tend to be younger, with an average age of 31, and of lower income. The Budget Lab said the median weekly pay for tipped workers in 2023 was $538, compared with roughly $1,000 for non-tipped workers.

As a result, many tipped workers already bear a lower income-tax burden. In 2022, 37% of tipped workers had incomes low enough that they paid no federal income tax at all, The Budget Lab said.

“If the issue is you’re concerned about low-income taxpayers, there are a lot better ways to address that problem, like expanding the Earned Income Tax Credit or changing tax rates or changing deductions,” Hines said.

In her speech in Nevada, Harris also called for raising the federal minimum wage. (The platform on Trump’s campaign site doesn’t mention the minimum wage.)

Changing federal tax policy on tips would also be costly. The Committee for a Responsible Federal Budget, a non-partisan group, estimates that exempting all tip income from federal income and payroll taxes would reduce revenue by $150 billion to $250 billion between 2026 and 2035. And it said that amount could rise significantly if the policy changed behavior and more people declared tip income.

Whether Trump or Harris wins the presidential election, tax policy will be high on Congress’ agenda in 2025. That’s because Trump-era tax cuts, passed in 2017, are set to expire. But Hines said he thinks Congress will be in no hurry to add “vast amounts of complexity” to the tax code.

she sleeps like she pays taxes fr

These Sun Bears are Man

They have round ears and human eyes. They are Bouba. They are Squinkly. They are mischievous. They pay taxes.