Comment by onlyrealcuzzo
3 days ago
At least the current version of the code has a ton of limits on what can be labeled tips, and the benefit phases out completely around $150k, and is only applicable to professional that traditionally receive a significant portion of income from tips - so it's not like you're going to have billionaires and PE fund managers paying themselves from their companies tens of millions in bonuses labeled as "Tips" and not paying any tax.
~90% of tipped workers REPORT less than $61k in income already. At that income, you're barely paying much income tax anyway.
This is just a trick to make people think they wouldn't have to pay social security and Medicare - which is the main tax they're paying - when in reality, ~90% of tipped workers will get next to nothing.
Plenty of early stage PMC jobs make under $150k, pay bonuses and CEOs would gladly be able to pay a little less if they can finagle it to be tax free.
Do they have a list of professions and industries eligible or are they going with weak “traditionally tipped “ language?
And we expect the DOGEd and defanged IRS to vigorously enforce?
> Do they have a list of professions
Yes.
> And we expect the DOGEd and defanged IRS to vigorously enforce?
It's easy to enforce as written, even with a defunded IRS.
Whether or not it will be enforced is a different question entirely. My crystal ball isn't working.