Suggestion for Obama. Ron Paul's Tax Free Tips.. Waitresses will love it.

[Joanne98]

Tax Free Tips Act Introduced by Ron Paul
Posted September 27th, 2007 by Michael Nystrom in Ron Paul
Ron Paul Speech to Congress

September 25, 2007

Madam Speaker, I rise to help millions of working Americans by introducing the Tax Free Tips Act. As the title suggests, this legislation makes tips exempt from federal income and payroll taxes. Tips often compose a substantial portion of the earnings of waiters, waitresses, and other service-sector employees. However, unlike regular wages, a service-sector employee usually has no guarantee of, or legal right to, a tip. Instead, the amount of a tip usually depends on how well an employee satisfies a client. Since the amount of taxes one pays increases along with the size of tip, taxing tips punishes workers for doing a superior job!

Many service-sector employers are young people trying to make money to pay for their education, or single parents struggling to provide for their children. Oftentimes, these workers work two jobs in hopes of making a better life for themselves and their families. The Tax Free Tips Act gives these hard-working Americans an immediate pay raise. People may use this pay raise to devote more resources to their children's, or their own, education, or to save for a home, retirement, or to start their own businesses.

Helping Americans improve themselves by reducing their taxes will make our country stronger. I, therefore, hope all my colleagues will join me in cosponsoring the Tax Free Tips Act.

http://www.govtrack.us/congress/bill.xpd?bill=h110-3664

It hasn't even made it out of committee yet.

[rzemanfl]

1. Like two-thirds of them are ever reported anyway....eom

[AndreaCG]

2. More go on credit cards now, so there's no choice but to report them.

[scarletwoman]

3. It doesn't work that way. The IRS demands that employers submit revenue reports, and if the employee

isn't reporting their tips, the IRS will calculate a percentage of their employer's revenue and hold the employee liable for taxes on that amount.

The IRS TOTALLY screws with tipped workers. It's absolutely disgusting.

sw

[Born_A_Truman]

4. Restaurant chains tax on tips based on sales

even if the server didn't get that tip. How many times do we need to tax the same money? The person giving the tip already paid taxes on it, then the person tipped pays taxes on it. Many servers tip out the bus people and/or the hostess yet still pays tax on that money.