The other problem is that it opens up a crazy stupid loophole for people to accept payment as a “tip” instead of via a proper invoice.
Yes I see “He supports eliminating taxes on tips for service and hospitality workers while also raising minimum wage and preventing the wealthy from gaming the system.” “Service workers” is pretty damned vague. “Preventing the wealthy from gaming the system” is impossible, because that’s all they do.
Not even the wealthy. Literally any service-based business would do this if their clientele would let them.
I have a buddy that’s a tattoo artist. He would absolutely charge $20 for materials, then request his hourly rate in tips.
I could imagine all sorts of grey or black market work just becoming de-facto legal because someone is now a caterer, and their ‘tips’ can be banked without fear of IRS audits. (But also, how cool would it be if cookie dealers gave you weed if you tipped well enough?)
And then comes the questions - are tradespeople in the service industry? A plumber performs a service.
Can an employer tip an employee? We’d sure find out, because someone would try it.
The other problem is that it opens up a crazy stupid loophole for people to accept payment as a “tip” instead of via a proper invoice.
Yes I see “He supports eliminating taxes on tips for service and hospitality workers while also raising minimum wage and preventing the wealthy from gaming the system.” “Service workers” is pretty damned vague. “Preventing the wealthy from gaming the system” is impossible, because that’s all they do.
Not even the wealthy. Literally any service-based business would do this if their clientele would let them.
I have a buddy that’s a tattoo artist. He would absolutely charge $20 for materials, then request his hourly rate in tips. I could imagine all sorts of grey or black market work just becoming de-facto legal because someone is now a caterer, and their ‘tips’ can be banked without fear of IRS audits. (But also, how cool would it be if cookie dealers gave you weed if you tipped well enough?)
And then comes the questions - are tradespeople in the service industry? A plumber performs a service. Can an employer tip an employee? We’d sure find out, because someone would try it.
Excluding tipped jobs from minimum wage is one distinguishing factor (that we sound also get rid of, but…“States’ rights!”)
that would probably solve everything, along with having an actual, reasonable, minimum wage. (including, point of fact, tipping culture.)
But um. nope. the best they can do is, “oh we won’t tax it.” Milquetoast half-assed solutions are how we got into this mess.