How "No Tax on Tips" Could Backfire

After reading all these comments, it’s like nobody actually looked to see what the actual rules are, and who is actually eligible for the no Tax on tips this is a joke. This video is absolute bullshit. Before you make a video and before you comment, maybe you should read exactly what has been laid out on the rules and regulation, for who are the ones that are eligible, considering all those extra people who keep adding tips to everything they do they’re not the ones that this is applying to and if you are only making 50,000 a year or under because you are tipped employee That is clear evidence that you have no benefits you have no benefits and you’re not allowed to even come close to 40 hours a week get your fax before you start bitching about people not claiming tax on tips

OK, but servers aren’t allowed to get full-time and servers are not allowed to have any benefits whatsoever. Did you put that into your factors?

Only a left wing channel like PBS would advocate "taxes on poor peoples wages good"

There is so much wrong with this video. No wonder it comes from PBS. Trash. Who makes $50k as a Wait person? the average is $30,617: Both Emmaual and Ifram Choose their profession. So why is this a big Deal if it only 2% of people earn Tips? Ther is more but my time is more valuable then posting here. Be Smart people.

You spend 5 minutes explaining how unintended consequences and perverse incentives can cause a policy that looks good at first glance to actually be economically harmful... and then you casually advocate for raising the minimum wage. 🤦‍♂️

Big Mac: Free! (Mandatory tip to establishment of 8$)

What kind of commie garbage is this? Anything that helps people keep more of their paychecks should be celebrated- quit squabbling.

It's NOT a "big beautiful bill", & it is disenginuos to describe in that way. In fact for most Americans it is just the opposite!

120k salary as a server will never exist 💀

No casino dealer is making $50k a year in salary 😂😂😂. At the very highest end, maybe $15 an hour. On average $6hr. No tax on tips is great

They should have campaigned on getting rid of the tipped wage, but the lobbyists wouldn't let that happen.

Love this.

Move to Dubai. No income tax, no capital gains tax and the safest place in the world 🙌

Servers don't declair much of their tips anyway to avoid taxes. In other words its a nonissue.

The video was great until the end when they shoe horned in about minimum wage. The whole video was appropriately, and correct, about tax policy until that point.

If tips are not taxable income, there's no reason to hand them over to the boss in the first place, and your boss cannot screw you over in the first place.
Edit: As many people have said here, the best way is to abolish the tipping culture in the first place. Sticker prices should be final prices.

There's another concern here. Tax burden is NOT intrinsically unfair. Tax burden is the primary means to political authority. If you want to vote, you better be paying taxes. What right does someone have to say how others spend money they didn't pay? It's the reverse of 'taxation without representation. It's political authority without duty. About half a generation from now, the same people who pushed this idea will start making the argument that 'they don't pay taxes, why should they get a say on how to spend other people's money? Hence, those with the least tax burden will lose suffrage. This is the plan all along, and those raised on ignorance will have fallen for it.

Well, even if it only applies to a little bit of people. Why is it bad? There’s no real objective data or arguing here that says why it’s a bad policy. I don’t agree with the bill as a whole, but it feels like this video is very partisan. My thought is, if the other party would oppose this, would they be making the same video?

Solve the stupid anomaly that happens in thw USA. PAY MORE IN SALARY. In Europe the worker has the tips as a BONUS not a salary.

If those earnings are not calculated towards the earned income and child tax credit, the taxpayer may shortchange their credit. While the tax savings may be trivial.

You had me until you said “raise minimum wage.”

Ask ANY economist what happens when you raise the minimum wage.

I don't and will never tip.

There is STILL a tax on tips. If you pay by credit card/debit and include a tip that tip is taxed.

havent watched the video yet, but I wanna guess. Is it because businesses will take advantage of that to legally reduce their taxes as much as legally possible by trying to mark as much income as they made to be from tips like a mandatory tip on food?


looks like my hidden mandatory tips is wrong, but oh well. It was still fun to think about it

sorry, I have to say this but... You want a tip? sure, here's a tip... tell your boss to pay you better. there, tip over. :D

tips are great for employers as they can shift the low pay blame to the customer.

Yal make great content and I agree with the meat of what you are saying. However, not everyone is 100% honest about the amount of tips they earn. It would be interesting to look at how the no tax on tips at the federal level affects people's honesty with declaring tip made income. If more people declare larger tip earnings because there is "no tax on tips" that would then allow states to increase revenue by getting to tax that declared income.

I mean I fell like I can leave a smaller tip now. Five bucks average is back!

Does your unemployment insurance also only cover wages and not tips? It's a problem up here so I suspect it's at least as bad down there.

damn, almost got worried, then I remembered that I'm in the EU :)

Here's a whole other issue, 5:48 , we've tried that in Cali and other states and it hurts those who worked up above $20/hr now trying to survive getting paid closer to fast food wage than they'd like. I escaped that pay range but it really sucks for those affected. Maybe we focus on cost of living? gasp There's an idea. I don't know why some groups hyper-focus on a proven failed idea vs real solutions to real problems. Cali's min wage increase sound good on paper but have been a disaster, especially the $20/hr only for fast food workers, downplaying more skilled labor where you may have to decide if you want fast food wage (lol) or entry level job experience at the same or reduced wage.

We do not tax people based on their income. That's only a secondary factor. We tax people based on HOW they get the money FIRST, THEN by income amount. Wage theft is illegal and employers that don't properly pay their emps should face consequences for their action.

Historically $2 min way + tips has been how it's worked with tip workers in a lot of places for a very long time, the flip side to that was servers never claimed the full amount of tips and a lot I know just did a bit over what they needed to bump over min wage and not look suspicious. At the places I used to work management made it clear that they knew that everyone did well enough with tips to make substantially more than min wage and they would investigate any strangeness. The wait staff reliably made WAY more than almost everyone else there, and in addition had the benefit of walking out with tons of cash each night instead of having to wait for payday.

As for the larger issue, I agree with others that we should move beyond tipping, and that it's silly to have a hidden tax of 20% on services but society doesn't seem to be ready to (or maybe even want to) do that yet.

Eliminate taxes on tips, and Eliminate machines that ask how much you want to tip.
It should still be ok for a tipping option to be on the machine, but not for it to assume you want to tip, and have to say no.

"Raising the minimum wage!"