https://archive.is/20250731232051/https://www.newyorker.com/...
> Some tipped workers, like bartenders, can make more in tips than a junior software engineer lol. Less taxes definitely helps their cause.
neat, but you can only deduct up to $25k and the benefits phase out if you earn more than $150k (single filers).
Re:“No tax on tips” is an industry plant
by reissbaker on Friday August 01, 2025 @04:30AM
(#44754284)
I think most bartenders would appreciate an extra $25k.
I am sure they would! but that isn't what the law says. Its a $25k DEDUCTION.
If someone earned $125k salary + $25k in tips. Their taxable income would decrease by about $6k (or $500/mo, 4% overall).
Re:“No tax on tips” is an industry plant
by reissbaker on Friday August 01, 2025 @10:56AM
(#44757729)
Okay. I think they would also like an extra $6k.
The Democrat's point isn't that workers shouldn't get tax cuts, but that he gave a $6,000 tax break to top earners, and gave even larger cuts to the wealthy overall.
Re:“No tax on tips” is an industry plant
by shazbotter on Friday August 01, 2025 @04:57AM
(#44754445)
Deducting 25k does not mean taking home an extra 25k. It means, probably, somewhere around $1-3k, depending on their tax bracket.
Re:“No tax on tips” is an industry plant
by noboostforyou on Friday August 01, 2025 @10:59AM
(#44757776)
That's...not how it works, like, at all. It's a tax credit, not actual money that you pocket additionally from your existing paycheck. It also only lasts until 2028.
> I can't read this article because of the paywall
I just turned on reader mode in Firefox and then refreshed the page and got the article. I'm surprised how often it works. It often doesn't but sometimes it does.
Some tipped workers, like bartenders, can make more in tips than a junior software engineer lol. Less taxes definitely helps their cause.
If you are concerned with indirect effects, there's quite a few pros and cons that you could extrapolate from the no tax on tips policy. These arguments are far less compelling in general.