This is worth a read if you’re unfamiliar with how Trump’s “no taxes on tips” proposal has been used by organized crime, corporations and the wealthy in the past to skirt massive amounts of taxes.
This is worth a read if you’re unfamiliar with how Trump’s “no taxes on tips” proposal has been used by organized crime, corporations and the wealthy in the past to skirt massive amounts of taxes.
How do you mean? He’s just stating a fact about Social Security benefits and how they work. The benefits you get are based on what you pay in, so if, say, half of that is no longer recorded, then your social security benefits will be reduced as compared to how it (sort of) works now.
In the US, I think it’s known that most people who get cash tips don’t record a fair amount of those to the IRS, but it’s not worth going after those folks. All he’s saying is that if ALL tipped income is no longer accounted for, then the line item for your future benefits from this system would obviously be reduced. That’s not fear mongering, just noting something that might not normally be considered when people get excited about the idea of non-taxed income.
It sounds like you’re arguing that the formula needs to be recalculated, which may or may not be true, but that’s not what I understood when I read the article.
What I understood is there was an overall amount of money problem, and this latter problem can easily be solved by changing the payment threshold. But if I totally misinterpreted the article, then I appreciate your correction. :-)