The government recognizes only one thing … by designating tips gifted by customers in appreciation of a job well done as income, they can take more money away from people who may really need the money.
Customary tipping used to be 10% … when good service was provided. Some 30-40 years ago (coincidentally when the '84 tax law was passed) that jumped to 15%. Now it’s up to 20-25% … because the workers are being shorted by their employers and are being dinged by the government as well. It’s a stupid system that was imposed to fix something that was working just fine before government got more greedy and stepped in.
■■■■■■■■■ Have you ever reported a gift as income?
Large gifts are taxable … and the tax is paid by the gift ever, not the recipient. Last year I gave a nephew property worth $60k. That amount was recorded against my lifetime allowable exemption (which I think is around $2 million now) from the gift tax. But my nephew was not taxed one nickel.
So … A flat tax with a significant personal deduction. That’s what I support. Why not work toward that goal instead of going after low-income service workers.
No question, if it’s on the bill, it’s income. But if I want to give the server another $10 cash because they were exceptional, that’s between me and them.
That was not the question Allan. Did the server work five times harder or do the job that they were paid to do five times better?
I can answer that for you with 100% confidence … NO.
And you are wrong about what you said there too. More than likely you will get smaller portions of food with the more expensive dinner. And your drinks, which are exactly the same size regardless of the restaurant, probably cost twice as much too. The only reason it takes you longer to eat it is because they take more time (slower service) to get it to you because the longer you sit there the more likely you are to order more of those double priced drinks and follow the meal with after dinner drinks and desert.
Electoral Template. Change to 5-way polling. Leads shrink, fewer polls reach 50% threshold. 5-way polling seems to benefit whoever is trailing in any state in the 2-way (with the exceptions of MI and NH).
Contested states (lead is >0 but <4 and leader (over 3 pts) has broken 50% in fewer than 2 polls)
WI: Harris up 1+ has not broken 50% in any poll
MI: Harris up 2+ has broken 50% in one poll
PA: Harris up 1+ has not broken 50% in any poll
GA: Trump up 1+ has not broken 50% in any poll
AZ: Tie neither has broken 50% in any poll
NC: Trump up 1+ has not broken 50% in any poll
NV: Trump up 2+ has broken 50% in any poll
Competitive (lead is >3 but <7 and leader (over 6) has broken 50% in fewer than 2 polls)
VA: Harris up 4 has not broken 50% in any poll
NH: Harris up 6+ has not broken 50% in any poll.
FL: Trump up 5 has not broken 50% in any poll
MN: Harris up 6 has not broken 50% in any poll
Marginal (lead is >6 but <9 and leader (over 8) has broken 50% in fewer than 3 polls)
None
Note: This data includes 5-way polling where RFK is on the ballot, or his petition has not been denied (NY-saving democracy)
Note: If either wins the states they are currently leading in Harris needs only to win AZ to win, Trump needs AZ and NE2
Latest Senate Math: MT slipping away from Democrats would be the 51st seat.
Contested (lead is >0 but <4, 3 if incumbent w/1 poll over 50)
AZ: Gallego(D) up 3+ has broken 50% in one poll
Competitive (lead is >3i w/50 but <7, 6 if incumbent w/1 poll over 50)
MT: Sheehy(R) up 4+ has broken 50% in two polls
MI: Slotkin(D) up 5+ has broken 50% in two polls
OH: Brown(D) up 5 has broken 50% in two polls
FL: Scott(R) up 5+ pts has not broken 50% in any poll
NV: Rosen(D) up 4 has broken 50% in one poll (in Jun)
NJ: Kim(D) up 6 has not broken 50% in any poll
Note: MT moves from contested to competitive
Marginal (leading candidate up >6i w/50 but <9, 8 if incumbent w/1 poll over 50)
TX: Cruz(R) up 7+ has broken 50% in one poll
NM: Heinrich is up 7 has not broken 50% in any poll
PA: Casey up 7+ pts has broken 50% in five polls
Note: Removed WI; Baldwin. She’s breaking 50% consistantly Note: TX back on Marginal list Note: Bold denotes a possible flip
GOP must hold FL and TX and take any other seat for an outright majority. If Trump wins, they need only hold FL and TX
DEMs must hold all of their seats plus take FL or TX to keep a majority, or all except FL and TX if Harris wins
Note: If the Presidential race is tied, Trump will become President, but if the Senate is in the balance (50/50) Democrats could make Harris or Walz VP in order to hold the Senate.
Looking deeper at contested races the following races are the races that all of the pundit sites (Silver, Cook, DDHQ and Rotherberg) agree either will flip or stand the greatest chance of flipping:
Dem to GOP (Total gains: GOP+6)
NC-1/R+1 District; PA-8/R+4 District; WA-3/R+4 District;
NC-6/Redistricting; NC-13/Redistricting; NC-14/Redistricting
GOP to Dem (Total gains: Dem+5)
NY-17/D+3 District; LA-6/Redistricting; AL-2/Redistricting;
NY-22/D+5 District; NY-4/D+5 District
Note: In all other contested districts all of the pundit sites rate the remaining races toss ups or give a slight edge to the incumbent party.
Other House seats with the opportunity to flip (by party demographics) open seatmost vulnerable
Contested (R1 to D1 or Incumbent underwater) CA13(R)…CA27(R)…CO08(D)…MI07(D)…NM02(D)…OR05(R) MI08(D)…OH13(D)…PA07(D)…WA08(D)…ME02(D)…OH09(D)
PA17(D)…NJ07(R)…NY19(R)…AK01(D)…CA22(R)…NE02(R)
CA45(R)…MN02(D)…NV03(D)…NH01(D)…MI03(D)…KS03(D)
VA07(D)…TX15(R)…PA01(R) 10R, 17D Most Vulnerable: 6R, 9D
Competitive R2-R4 and D2-D4 CA47(D)…AZ01(R)…OH01(D)…VA02(R)…AZ06(R)…CA41(R)
IA03(R)…WI03(R)…CA49(D)…MD06(D)…NV01(D)…NH02(D)
CT05(D)…IL17(D)…IN01(D)…NY18(D)…OR06(D)…TX28(D)
NV04(D)…NY03(D)…OR04(D)…CA03(R)…CA40(R)…IA01(R)
NY01(R)…WI01(R)…MI10(R)…CA45(R) 10R, 18D Most Vulnerable: 3R, 0D
Note: Vulnerability is based on party demographics for the district >+2 underwater or recent redistricting changes making the seat more competitive with a party demographic switch.
Gifts are subject to gift taxes, not income taxes. It’s a different section of the code. Of course, currently tips are a part of the income tax code. Legally, they are what the code says they are.
Personally, I could care less how they treat them. Do most waiters or waitresses have sufficient income to pay that much in income taxes? I guess some must.
Treating all income the same is the core element of a flat tax. And if the “floor” as you call it, is $40-50,000 as I suggested, the poor would pay no Federal taxes. Middle income currently starts just over $40k.
Why should they not be taxed? What percentage of hospitality staff are outside the 47 percent who pay no taxes at all? If they as the right loves to point out for the most part pay no taxes why shouldn’t the government max out tax receipts against them?