Any Ron Paul Supporters Agree With This?

Question

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.

This should stop.

“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,” stated Congressman Paul.

Answer 1

I completely agree with this (and abolishing the IRS). As a tipped employee you are not legally guaranteed a tip therefor it should not be taxable. I worked as a waitress making $2.13/hr plus tips. We used to have these 3 ladies come in and order about $100 worth of food. Their tip was always the same... $1. But as far as the IRS was concerned I should have made at least $8 and was taxed accordingly.
Go Ron Paul!

Answer 2

The IRS can be eliminated and replaced with NOTHING!

When I realised (after reading some articles from Devvy Kidd) that all of us hard working citizens were paying the I.R.S. money that goes straight to the interest on the National debt, NONE of it going to any government services, I felt hopeless.

The FED is PRIVATELY OWNED corporation, which has been stealing our money for over 90 years. It must be abolished! We work for 4 months out of the year as SLAVES to corrupt bankers: the Rothschilds, the Rockefellers and others.


Get it folks? the FED is a SCAM! NONE of the money the IRS takes from us goes to government services!!!

I can't believe how ignorant people are...

watch the movie "the money masters" link below. it explains how we are ALL slaves to the rich.....

Answer 3

I agree that something must be done to help the "working poor" class that has developed due to Americans being told it's legal and Constitutional for us to "compete" with foreign SLAVES. This is TREASON!!! "Our" government has been taken over, broken all the rules, become our enemy and NO LONGER HAS THE AUTHORITY TO GOVERN US!!! IT IS OUR RIGHT AND OUR RESPONSIBILITY TO REMOVE AND PUNISH THEM!!!

Still... This sounds extremely unfair and poorly thought out to me. People who work for tips usually have a very low hourly wage (minimum wage for people with tip incomes is usually lower), so their pay would be nearly tax-free. People who get tips and a lower hourly wage often do better than people in low-paying jobs where there are no tips already. With this law... other people in low-paying jobs that don't get tips would be stuck with lower pay AND NOW a much heavier (and unequal) tax burden as well. It's really ridiculous when you think about it... Easing the tax burden on low-paid employees in only a few particular jobs at the expense of other underpaid employees.

While I feel Ron Paul is our only hope for not electing a member of the syndicate that's robbing and destroying this country... Some silly stuff he does (like this) does not inspire confidence. I think we're screwed no matter what at this point. The "powers that be" are unconstitutionally silencing anyone fighting them right out in the open and nobody's stopping them. If Ron Paul managed to get elected, they'd kill him in a heartbeat anyway. "Our" government isn't even hiding much of their crime at this point, and a brainwashed America that no longer understands freedom or the rules and ideas this country was built on have done absolutely nothing about it. This country's in HUGE trouble. Outside of a revolution, things look pretty hopeless for us remaining a free and sovereign nation.

What borders?... :(

Answer 4

Abolish the IRS. Audit the Federal Reserve. Ron Paul 2008!

Answer 5

Absolutely! I agree with any tax cuts. Really, this is vintage Ron Paul. He's always introducing bills proposing tax cuts, tax credits and so forth. I kind of view these bills as his way of compromise over the IRS. If he can't get the income tax abolished, he at least seems bent on poking holes in it.

It's truly baffling that his bills get little support!

Answer 6

Let's say you make $20,000/year tip free income. Your neighbor makes the same amount, except hers contains $13,000 in tip income. Both of you are single, no dependents - in other words, everything is the same except how the money is earned. At the end of the year, she will owe no tax, + she will receive the Earned Income Credit of $390. You will pay $1359 & not receive the EIC. , a $1749 difference. (These figures are based on 2006 tax tables.) Now - is that fair?

I helped a friend with her taxes last year,; the figures are close to reality in her case.

I oppose the bill for obvious reasons. I can agree that estimated tip income should not be withheld from your pay, I could even agree to abolishing the IRS & the income tax altogether depending on how he proposes the govt pays its bills. But to exempt a group of people based solely on their job description is out of the question.

An added note: Dr. Paul is a very intelligent man with a great deal of integrity. While his proposals & the reasoning behind them make sense, what he does not do is offer a plan which will FAIRLY get us from where we are today & the systems in place, to where he wants to go.

Answer 7

I agree i have a friend who is a waiter and he told me how you can be screwed by the irs if your a waiter and most of the time itt will throw you into a higher tax bracket and cancel out your tips

Answer 8

I think that this a good idea, especially since the IRS estimates what the server should make rather than basing the tax on what they do make. Fewer taxes = more money in the pockets of hard workers.

Answer 9

Yes! Great idea! Let's take it one step further and eliminate the IRS all together and put in a system that's not so dadgum convoluted!

Answer 10

Yes, I DO agree with Ron Paul on this. Pay role taxes are unconstitutional to start with. People today are still SLAVES to the ultra rich and the kind of taxation which Paul is talking about right here is a PRIME example!