California Republicans propose no tax on tips, Democrats vote no

Discussion in 'Budget & Taxes' started by kazenatsu, Sep 3, 2024.

  1. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Some say this proves Democrats don't really care about the working class. Others might view this as just a political stunt by Republicans, and don't see it as fair not to tax tips.

    California Republicans propose no tax on tips, Democrats vote no

    In a mirror of national politics, California Republicans followed former President Donald Trump’s lead by proposing to end taxes on tips. While Vice President Kamala Harris, who formerly represented California in the U.S. Senate, embraced the measure, California Democrats said no, shooting down the proposed amendment in the California Senate. "Even Trump and Harris both say we should eliminate the 'tip tax'," said the California Senate Republican Caucus in a statement.

    Soon after Trump announced his proposal to a crowd in Nevada, which has the highest percentage of tipped workers in the nation, Harris also came out in favor of the proposal. The Budget Lab at Yale University reports there are approximately 4 million tipped workers -- 2.5% of all workers nationwide. Many tipped workers earn less than the minimum wage, and thus earn the lion's share of their income from tips. Some higher-paid tipped professions such as barbers and hair stylists would also benefit from this rule change. The bipartisan Committee for Responsible Federal Budget says this proposal would likely reduce government revenue by approximately $15 to $25 billion per year.​

    https://www.thecentersquare.com/california/article_39a2f202-6709-11ef-842b-a7fdb7eb02e4.html
    by Kenneth Schrupp, The Center Square, August 30, 2024
     
    Last edited: Sep 3, 2024
  2. DarkDaimon

    DarkDaimon Well-Known Member

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    We should just get rid of tips completely and just pay people more. Tips are just hidden fees on the consumer.
     
  3. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    That's not really a direct answer to the question.
    I notice that many of those on the Left seem to avoid wanting to directly address problematic dilemmas by simply bringing up some other potential idealistic solution which is unlikely to ever actually come to fruition any time soon.
    The issue at hand is, if you had to choose between taxing tips, or not taxing tips, which one would it be? Assuming that tips continue to be a substantial part of waiter's incomes.
     
  4. DarkDaimon

    DarkDaimon Well-Known Member

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    The issue is that you guys want to use a band-aid when a tourniquet is needed. It would be a like having 4th stage cancer and the doctor offers you the choice between aromatherapy or a gluten-free diet when what you really need is an operation and chemotherapy.
     
  5. kazenatsu

    kazenatsu Well-Known Member Past Donor

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    Great, so waiters can take comfort in the fact that, even though Democrats want to tax their tips, Democrats wish for a future where all lower income workers earn more. Never mind all the problematic and thorny issues of exactly how Democrats are going to actually be able to achieve that and get things to that point, or how far off into the future that might be.
    Progressive Democrats already hold a supermajority in California (Republicans hold only 17 out of the 80 seats in the State Assembly), so why haven't they already solved this problem, if it is so easy to solve?

    Maybe it's totally off topic, but do you know what this reminds me of? Certain Pro-Lifers who say, even though they're going to ban abortion, don't worry, because they are working to change things and provide the support to women that they need so that women don't need to abort.
     
    Last edited: Sep 8, 2024

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