Ron Paul introduces "Tax Free Tip" Legislation

[ZeroPointMachine]

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Introducing the Tax Free Tips Act
Ron Paul Speech to Congress, September 25, 2007

http://www.ronpaullib...

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.

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H.R.3664 : To amend the Internal Revenue Code of 1986 to provide that tips shall not be subject to income or employment taxes.

Sponsor: Rep Paul, Ron [TX-14] (introduced 9/25/2007) Cosponsors (None)
Committees: House Ways and Means
Latest Major Action: 9/25/2007 Referred to House committee. Status: Referred to the House Committee on Ways and Means.

LINK

http://thomas.loc.gov...
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Something to grab the attention of any poker dealer or cocktail waitress.

[Cactus Jack]

...and shuttle bus drivers. [img]/images/graemlins/laugh.gif[/img]

[YoureToast]

imho, this makes him look silly.

[BBMW]

No. But it opens a wide world of loopholes, and would push the concept of tip driven income to jobs never thought of before.

[Uglyowl]

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imho, this makes him look silly.

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Agreed

[Legislurker]

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imho, this makes him look MORE SILLY.

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FYP.

[whangarei]

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Since the amount of taxes one pays increases along with the size of tip, taxing tips punishes workers for doing a superior job!

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This is really bad economics

[Jimbo]

Guess he hasn't figured out that everyone would just tip 40% less. [img]/images/graemlins/smile.gif[/img]

Jimbo

[DeadMoneyDad]

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No. But it opens a wide world of loopholes, and would push the concept of tip driven income to jobs never thought of before.

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I can see the want ads now.

"CEO wanted, must be willing to work for tips....."


D$D

[Tuff_Fish]

There is actually sound economics in this proposal.

There would be a very modest hit on revenue, but a rather large multiplier effect on the economy.

Earned income in the hands of the "working class" is much better overall than money in the hands of the government.

Tuff graduate of econ 101