Really they’re pretty much just recognizing the reality of most small shops that I’ve ever known. At least when tipped in cash I’ve never known one to care to register and tax tips. Maybe that’s changed with people shifting so much to cards and apps now, and some big places, by third hand accounts, are more twitchy about ‘those are the rules’.
Yeah, but if that’s the reasoning, this bill does nothing. A tax deduction just reduces your taxable income. So you can volunteer to report your cash tips in order to not pay taxes on them. Or continue to not report and also not pay taxes. Or just report $25k. They all lead to the same tax burden.
Really they’re pretty much just recognizing the reality of most small shops that I’ve ever known. At least when tipped in cash I’ve never known one to care to register and tax tips. Maybe that’s changed with people shifting so much to cards and apps now, and some big places, by third hand accounts, are more twitchy about ‘those are the rules’.
Yeah, but if that’s the reasoning, this bill does nothing. A tax deduction just reduces your taxable income. So you can volunteer to report your cash tips in order to not pay taxes on them. Or continue to not report and also not pay taxes. Or just report $25k. They all lead to the same tax burden.
It’s for show, ‘he helps the little people!’ while the actual deductions are all funneled to the top.