This is worth a read if you’re unfamiliar with how Trump’s “no taxes on tips” proposal has been used by organized crime, corporations and the wealthy in the past to skirt massive amounts of taxes.
This is worth a read if you’re unfamiliar with how Trump’s “no taxes on tips” proposal has been used by organized crime, corporations and the wealthy in the past to skirt massive amounts of taxes.
It’s even worse than that. These tips have to be given after the fact, and they can’t be promised in writing, and the high budget ones are given between people who are trying to get as rich as possible at everyone else’s expense. So, why would I give you a ton of money for some past action when I don’t have to, when I’m greedy and there’s no agreement on paper? Clearly it’s only because I expect to work with you in the future, and I want you to hook me up then. In other words, these high-value tips are actually bribes for future favors.