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Ms. Toad

(38,717 posts)
3. Apples and oranges.
Thu Apr 16, 2026, 03:49 PM
Thursday

While he does make a valid point that taking advantage of the deduction requires that you have taxable income, you hit that at about $7.50 an hour. If your employer pays you $7.50/hour and you make the rest in tips - up to $25,000, you pay zero income tax on that $25,000. A savings of around $3000.

Then he launches into all of the other increases in order to somehow turn this into a scam because the tax break for a few doesn't cover the increased cost of living for those same few. Apples and oranges.

I do have issues with the no tax on tips, because it favors one large, vocal, group of employees while not giving equivalent groups a similar tax break. But that doesn't make it a scam - it just forces us to fight each other for the same small pie (which giving a huge chunk of that pie to a group that would otherwise be fighting alongside us to make the pie bigger. But, again, that doesn't make it a scam. Just bad policy.

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