Trump made a similar promise at his own rally in the city in June — though neither he nor Harris are likely to be able to fully do that without actions from Congress.
Looks like many haven’t read the article before commenting. While both candidates have a proposal about the same topic, the methodology of implementing this seems to differ greatly.
The reaction in the comments appears to reflect more of the potential outcome of the Trump plan, though the Trump plan seems to mainly be some cobbled together bits of some other Republican proposals.
From the article, the Harris plan goes along with a minimum wage increase and an income cap so higher wage workers can’t collect tax free “tips” in lieu of taxable income.
I also looked up some implications of elimination of taxed tips and found this article that goes into some numbers and shows how raising the standard deduction to make more workers, not just tipped workers, exempt from income tax and benefit many more people. I thought that was interesting and provided more seemingly useful info than either candidates’ campaign promises.
The numbers didn’t really look in line for today’s incomes, and from what I can tell from this, tax brackets for anything but the highest earners haven’t changed other than an inflation adjustment since the 80s.
I’ll guess if you’re non-US, you’re also getting things for your taxes such as healthcare and other services. For us, it’s essentially a la carte pricing, so for many of these people in the lower tax brackets, healthcare is much more than taxes.
The bottom 50% of earners pay about $700/yr in federal tax. State and local taxes, property tax, school tax, and sales tax on top of that. “Average” income tax is $15,000, only due to wealth disparity. The bottom 50% pay less than 2.5% of all income tax.
Average healthcare cost is around $14,000/yr, so even for solidly middle-class people, healthcare costs are the same or higher than paid taxes, so that is probably much closer to, if not more than you may be paying.
Paying tax is a civic responsibility. The real pain comes from not feeling like you get what you pay for. I’ve no issue with coughing up some cash for safe roads and food inspectors, but when we have bridges collapsing and healthcare isn’t considered a human right, it makes for some discontentment.
Wow, that chart does look crazy high in comparison.
I always think VAT looks wildly expensive as well.
I found 2 more charts and each country looks to have fairly different ways of taxing people, making it hard to see who’s getting the best and worst deals. Especially as the taxes go to different things.
It’s just a title, it says what the article is about, but it can’t say everything. But when everyone comments based on the title and not the article, we risk creating misinformation.
Trump and Harris can both say we should not tax tips, but if that’s the end of the story from Trump, but it’s part of a multi-pronged approach, that’s what we need to be sharing and commenting on.
Everyone’s points about tipped jobs being exploitative are correct, but that isn’t what the article is about. If we just take it as Harris and Trump both want to do the same thing, that’s a half truth, and that is what many of these comments perpetuate. Both sides or this are not the same, and it does a disservice to us all to treat it as such.
Having a more descriptive title can help, like if it said “Harris presents competing plan for removing tax on tips,” but it is somewhat redundant as they wrote the entire rest of the article about it. I feel this is why we include the article with the post, and not just the title, no? 😉
I feel I’m sounding a bit harsh, which isn’t my intent, but it irks me when I can go through a comment section and see just about everyone has missed the point.
Looks like many haven’t read the article before commenting. While both candidates have a proposal about the same topic, the methodology of implementing this seems to differ greatly.
The reaction in the comments appears to reflect more of the potential outcome of the Trump plan, though the Trump plan seems to mainly be some cobbled together bits of some other Republican proposals.
From the article, the Harris plan goes along with a minimum wage increase and an income cap so higher wage workers can’t collect tax free “tips” in lieu of taxable income.
I also looked up some implications of elimination of taxed tips and found this article that goes into some numbers and shows how raising the standard deduction to make more workers, not just tipped workers, exempt from income tax and benefit many more people. I thought that was interesting and provided more seemingly useful info than either candidates’ campaign promises.
The solution would be to increase the lowest tax bracket then.
That’s another fine suggestion.
The numbers didn’t really look in line for today’s incomes, and from what I can tell from this, tax brackets for anything but the highest earners haven’t changed other than an inflation adjustment since the 80s.
Wish my wages were taxed at those brackets
I’ll guess if you’re non-US, you’re also getting things for your taxes such as healthcare and other services. For us, it’s essentially a la carte pricing, so for many of these people in the lower tax brackets, healthcare is much more than taxes.
The bottom 50% of earners pay about $700/yr in federal tax. State and local taxes, property tax, school tax, and sales tax on top of that. “Average” income tax is $15,000, only due to wealth disparity. The bottom 50% pay less than 2.5% of all income tax.
Average healthcare cost is around $14,000/yr, so even for solidly middle-class people, healthcare costs are the same or higher than paid taxes, so that is probably much closer to, if not more than you may be paying.
Paying tax is a civic responsibility. The real pain comes from not feeling like you get what you pay for. I’ve no issue with coughing up some cash for safe roads and food inspectors, but when we have bridges collapsing and healthcare isn’t considered a human right, it makes for some discontentment.
Before any taxes are applied, we pay 13,08% for social security. Then taxes are applied according to following brackets:
Wow, that chart does look crazy high in comparison.
I always think VAT looks wildly expensive as well.
I found 2 more charts and each country looks to have fairly different ways of taxing people, making it hard to see who’s getting the best and worst deals. Especially as the taxes go to different things.
Chart article
So the title is misleading?
It’s just a title, it says what the article is about, but it can’t say everything. But when everyone comments based on the title and not the article, we risk creating misinformation.
Trump and Harris can both say we should not tax tips, but if that’s the end of the story from Trump, but it’s part of a multi-pronged approach, that’s what we need to be sharing and commenting on.
Everyone’s points about tipped jobs being exploitative are correct, but that isn’t what the article is about. If we just take it as Harris and Trump both want to do the same thing, that’s a half truth, and that is what many of these comments perpetuate. Both sides or this are not the same, and it does a disservice to us all to treat it as such.
Having a more descriptive title can help, like if it said “Harris presents competing plan for removing tax on tips,” but it is somewhat redundant as they wrote the entire rest of the article about it. I feel this is why we include the article with the post, and not just the title, no? 😉
I feel I’m sounding a bit harsh, which isn’t my intent, but it irks me when I can go through a comment section and see just about everyone has missed the point.
Ok. Got it. Sounds like a misleading title.