Even as someone who would be considered fiscally responsible, I have absolutely no problem with her no tax on tip for service workers. For one thing, the fiscal impact is de minimis. A large portion of these people fall below the minimum tax rate, so they don't pay any fed income tax anyway. Those that do have a tax liability probably on…
Even as someone who would be considered fiscally responsible, I have absolutely no problem with her no tax on tip for service workers. For one thing, the fiscal impact is de minimis. A large portion of these people fall below the minimum tax rate, so they don't pay any fed income tax anyway. Those that do have a tax liability probably only have a small portion that falls within the 10% tax bracket. If done right with guardrails to prevent abuse, which she is outlining, it's not a big deal, and if it helps us carry Nevada, then it has a great ROI. A few limits on what jobs the exemption applies to, so that you don't have professionals (ie. lawyers and financial advisors, etc.) structuring their fees to qualify as tips. Also put a limit on it, such as a max of $5/hr, or $10hr equivalent being exempt from taxes. Which would be mean only the first $10K or $20K is all that would be exempt. Trump's proposal is not as thought out and is really just pandering.
Even as someone who would be considered fiscally responsible, I have absolutely no problem with her no tax on tip for service workers. For one thing, the fiscal impact is de minimis. A large portion of these people fall below the minimum tax rate, so they don't pay any fed income tax anyway. Those that do have a tax liability probably only have a small portion that falls within the 10% tax bracket. If done right with guardrails to prevent abuse, which she is outlining, it's not a big deal, and if it helps us carry Nevada, then it has a great ROI. A few limits on what jobs the exemption applies to, so that you don't have professionals (ie. lawyers and financial advisors, etc.) structuring their fees to qualify as tips. Also put a limit on it, such as a max of $5/hr, or $10hr equivalent being exempt from taxes. Which would be mean only the first $10K or $20K is all that would be exempt. Trump's proposal is not as thought out and is really just pandering.