http://www.house.gov/paul/press/press2007/pr092707.htm
Congressman Paul Introduces "The Tax Free Tips Act"
September 27, 2007
Washington, DC - Congressman Ron Paul has introduced legislation that would ease the tax burden on some of America ’s hardest workers – those in the service industry.
The Tax Free Tips Act of 2007 H.R. 3664 would exempt tips and gratuities 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!
Not only that, but the IRS estimates how much in tips an employee should have received and taxes them based on that.
2007-10-02
14:50:44
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