***Official Political Discussion Thread***

I figure that tips are synonymous with low income (although that’s not always the case) and reducing income taxes on low income people is popular among not only rank and file Democratic voters but Republicans as well.

It seems more straightforward to just cut federal income tax for lower income people, which in many cases would mean an even larger Earned Income Tax Credit.

You could make a utilitarian argument that a dollar earned in tips should be taxed at a lower rate than a dollar earned in regular paycheck. Uncertainty and emotional labor probably do make a dollar in tips harder to earn, all other variables held constant, than a dollar in wage income.

I think that up to a certain point, tips should be taxed a little less for that reason. But the special, lower rate should phase out pretty quickly precisely to prevent the rampant tax avoidance that would happen without a phase out.


TBH, lower income Americans don’t pay very much in federal income tax and if you have kids, their federal income tax rate is effectively negative. That’s fine and how it should be. But I think that people under a certain income level should get an enhanced standard deduction for sales tax.

They wouldn’t have to itemize, unless they wanted to, just increase standard deduction based on what the average person at a given income level pays in sales tax. States and local governments get more money and lower income households pay less in overall taxes.

I feel like people are gonna start paying for higher value goods and/or services at a highly discounted rate and then paying the majority as a "tip" so that it isn't taxed. I'm always suspicious when any GOP people get behind something that, on the face, is beneficial to working class folks. And any tax loophole will definitely be exploited more by anyone that has an accountant.
 
I feel like people are gonna start paying for higher value goods and/or services at a highly discounted rate and then paying the majority as a "tip" so that it isn't taxed. I'm always suspicious when any GOP people get behind something that, on the face, is beneficial to working class folks. And any tax loophole will definitely be exploited more by anyone that has an accountant.

It will undoubtedly screw over people who work on tips. Which is why Kamala also endorsing it is dumb, even if it is a good soundbite for people who don't read more into things.

The actual solution is eliminate the "tipped minimum wage," as well as creating new laws for which tips go to the workers who actually do the work to get them.
Not taxing tips likely has limited to no impact financially because taxed workers don't make a lot of money , increases the deficit because it will be a lot of money not getting tax (because you know tax cuts for the rich are coming as well), restaurant owners will find a way to screw their employers out of a percentage of their tips because it's not taxed, and finally there hasn't been properly explanation how social security won't be negatively impacted for these workers and for social security as a whole.


Also, if tips are not taxed. There is a possibility that people who are dicks will begin to tip less because people are dicks.
 
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Like I said before, there is ALWAYS a Tweet. 😂😂😂
 


This guy is such a dumb ******* moron!! 😂😂 Like, there's dumb and there's poor bastard dumb. He has ABSOLUTELY ZERO CLUE what Tesla actually builds or how they work. I'm freaking shocked he can get out of bed and dress himself every morning, considering his head is full of ketchup! 😂😂
 
Something I love about Tim Walz is that he represents what I want out of other adults when my kids are adolescents.

The first decade or so after puberty, a person is biologically programmed to think that their parents are idiots. It’s on teachers, coaches, the kid’s parents’, aunts and uncles, neighbors, your pick up basketball randoms who are over 25, etc. to steer them right.

That’s a terrifying prospect for parents. I can understand why some conservative parents want to withdraw from all of that. It’s scary to know that your babies’ fate is partially in the hands of other people. But I see it as a reason for why we need high-trust societies that are kind to vulnerable people (and teens, despite their oft robust physical abilities, are quite vulnerable).

So if any Party wants to save and protect children, it’s clearly not Republicans who want to do so. Turning the home into a fortress might protect your young children but eventually, they’ll be young adults. We need to shape the world outside of our homes to be beneficial to our young adult kids.

I want k-12 teachers to be so well paid that the schools have talent and can siphon off talent from other sectors. Our kids’ adulthoods and young adulthoods largely depend on doing so.
 
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