Ron Paul is right...

[Lukey]

Tips aren't "earned" income, it's a gift. It shouldn't be taxed (except over $10,000 from one person via the gift tax laws):

http://www.lasvegassun.com/news/2012/jan/31/ron-paul-end-tax-tips-nevada/

 

[ITALIA]

Tips aren't "earned" income, it's a gift. It shouldn't be taxed (except over $10,000 from one person via the gift tax laws):

http://www.lasvegassun.com/news/2012/jan/31/ron-paul-end-tax-tips-nevada/

The only thing right about Paul is his politics. Far right. Here is where you and he are wrong. The tip is for doing a good or superior job. In that sense it isn't a gift but a bonus which is taxable income. GEEEZ!

 

[Days]

Legally, he is. Culturally, American tips are really our pay... I wish Europeans and Asians that come over here would figure that out. (I drive a cab)

 

[Days]

Nope, bonuses come from your employer, not customers. (your logic is correct, but legally it is not a bonus)

 

[Bo-4]

Tips aren't "earned" income, it's a gift. It shouldn't be taxed (except over $10,000 from one person via the gift tax laws):

http://www.lasvegassun.com/news/2012/jan/31/ron-paul-end-tax-tips-nevada/

No worries there.. those who receive tips don't report anything over the assumed 8% anyway.

 

[ITALIA]

Nope, bonuses come from your employer, not customers. (your logic is correct, but legally it is not a bonus)

O.K. Then it is volunteer pay for service.

 

[Corruptbuddha]

I'd agree.

Of course if Capitol gains should be taxed as income (like the liberals want) not one thin dime that comes to you from someone else is immune to their big government greed.

 

[Days]

what it is (and I understand this because I drive a cab) is contractor pay for services. the customer is directly hiring us for service and is expected to pay a portion over and above product delivered for our service in delivering it. Asians and Europeans do not have that kind of a culture, so they don't understand it when they come here.

 

[Days]

whether we get stiffed or not.

 

[mark14]

Tips aren't "earned" income, it's a gift. It shouldn't be taxed (except over $10,000 from one person via the gift tax laws):

http://www.lasvegassun.com/news/2012/jan/31/ron-paul-end-tax-tips-nevada/

Then why are they counted against minimum wage http://www.dol.gov/dol/topic/wages/wagestips.htm ? By not reporting the total amount of tips if they are over $30/month the law is being broken and the employee is likely forgoing the employer contribution to SS which for low wage jobs, as the right wing endlessly lies and complains about, are often the only federal taxes generally paid.

This will undoubtedly be another opinion rather than fact based thread.

Ron Paul is honest which isn't the same thing as right.

 

[Bo-4]

whether we get stiffed or not.

So how does that work Days? You drive a taxi and pick up 5 fares in a row who stiff you. Do you still have to report 8% to the feds out of your base salary?

 

[Bo-4]

Btw, every state should do away with taxes on food other than that served in restaurants. I lived in Oregon where there were no sales taxes and knew when i moved to Idaho i'd be paying them. But it REALLY pissed me off to get taxed on grocery items.

 

[Lukey]

Then why are they counted against minimum wage http://www.dol.gov/dol/topic/wages/wagestips.htm ? By not reporting the total amount of tips if they are over $30/month the law is being broken and the employee is likely forgoing the employer contribution to SS which for low wage jobs, as the right wing endlessly lies and complains about, are often the only federal taxes generally paid.

This will undoubtedly be another opinion rather than fact based thread.

Ron Paul is honest which isn't the same thing as right.

They shouldn't be.

 

[Lukey]

O.K. Then it is volunteer pay for service.

If it is "voluntary" - it is not "compensation."

 

[Huskyoverlord]

Ron paul could easily be convinced of gay marriage or anything else that is in the spirt of our country. He seems to be the most honest man in washington and that counts for much more then his politics , because he will vote for the people's freedom , mabye he didn't agree with homosexuals in the military but he voted to repeal don't ask don't tell because people told him it was wrong and unamerican and ron paul is ultra american.

 

[connieb]

That would be HUGE for the service industry. Not only do the workers have to pay SS and Med on the "estimated' tips, but the employers will also have to match.

This will negatively impact the workers SS benefits later in life, especially if they make a career out of a waitstaff position. But, who knows what those programs will be like in 50 years anyway.

connie

 

[mark14]

They shouldn't be.

Well it depends how you mean that. The restaurant owners want it counted so they can pay less than minimum wage but if there were no minimum wage then they would agree because then they would have to pay less Social Security taxes. The liberals say don't count it and make restaurant owners pay the full minimum wage. With both sides having their reason not to like it I think there must be something for it and tips do encourage good service even if there isn't anything to do about stingy tippers.

 

[Days]

exactly, so technically it is a gift, Ron Paul is right.

 

[Days]

I drive totally under the table, and I make so little, it just isn't worth reporting. I don't even file a tax return, but it would be better for me if I had some income to report because when I did do that (before he laid me off the 3rd time and hired me back with little to no work), I still paid zero taxes but would receive an earned income credit for my son, around $2000+. Cab driving is different than waiting tables, we have to pay for the gas used... that's where our tips go. The

of it is, the price of gas is so high, it runs around 25% of the fares booked... you have to be a damn good cab driver to average 25% tips, especially when Europeans are coming from a culture where a good tip is 10%. BTW, I'm a damn good cab driver; my tips usually pay my gas. But even then, I am netting zero income from that. With the drop in business and the increase in gas prices, cab drivers are now listed as an endangered animal ... and with the oil corps still gouging for more, we could become extinct (soon).

 

[Figjam]

...tips are earned and should be reported. Many States allow service industries, such as restaurants, to pay less than minimum wage expecting service staff will more than make up the difference in tips. The IRS does a "base" calculated rate because many people do not claim all of their tips.

...but please, carry on with paul's outrage against the machine - which he has been part of for ~25-years...