Eliminating taxes lets productive people keep a little more of what they rightfully earned and what’s rightfully theirs. From Laurence M. Vance at lewrockwelll.com:
A prominent libertarian is calling Trump’s tax proposals to eliminate taxes on tips and Social Security benefits “goofy.” What’s so goofy about eliminating these taxes and letting Americans keep more of their money?
Said Trump about tip taxation: “For those hotel workers and people that get tips, you’re going to be very happy, because when I get to office, we are going to not charge taxes on tips. You do a great job of service. You take care of people, and I think it’s going to be something that really is deserved.”
According to the Internal Revenue Service (IRS): “All cash and non-cash tips an received by an employee are income and are subject to Federal income taxes. All cash tips received by an employee in any calendar month are subject to social security and Medicare taxes and must be reported to the employer.” Tips include:
- Cash tips received directly from customers.
- Tips from customers who leave a tip through electronic settlement or payment. This includes a credit card, debit card, gift card or any other electronic payment method.
- The value of any noncash tips, such as tickets or other items of value.
- Tip amounts received from other employees paid out through tip pools, tip splitting, or other formal/informal tip sharing arrangement.
Said Trump about Social Security taxation: “Seniors should not pay taxes on Social Security and they won’t.”
