Juliet Iacona 0

Stop the legal crime of taxing tips

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It has recently been brought to my attention that the \"tips\" that food and beverage establishments receive for their employees from willing customers are not \"tips\" at all. No, they are simply apart of a wage, and like a wage it is taxed by the government. Waiters and waitresses are not the only victims to this heinous crime, but the minuscule tips in cups at locations such as Starbucks Coffee are also taxed. The definition of a \"tip\" is, \"a small present of money given directly to someone for performing a service or menial task; gratuity\" (dictionary.com). The key phrase in that definition is directly to someone, but in reality tips take a sidetrack to the government before they can reach their rightful owners. This is wrong, and what I as well as many others consider stealing. The IRS states this, about tip reporting, on their website: \"Tips your employees receive from customers are generally subject to withholding. Employees are required to claim all tip income received. This includes tips you paid over to the employee for charge customers and tips the employee received directly from customers\" (http://www.irs.gov/businesses/small/industries/article/0,,id=98401,00.html) I cannot believe that this is legal, it is truly sickening. This statement almost implies that every dollar you ever make is not truly your property and that you owe the government a piece of everything. It is almost like saying that if you find a dollar on the ground somewhere you have to claim it to the government and get it taxed. How ridiculous does that sound My first thought on this rule about taxing tips was whoever made up this rule should be slapped. Should we now tax the money that our grandparents give us for our birthday, and for babysitting or mowing the lawn I mean you are performing a service when you baby-sit or mow the lawn, should we eagerly claim that to the government to It doesn\'t matter if only a small portion is taken out of your tip, it doesn\'t make it right. Since employees at places like Starbucks do not generally get large amount of tip money, that small chunk taken out every hour is a large amount and can account for 25-33% or more. It also adds up over time so what looks like a small portion taken out now will not look that way in a month or two. These customers giving tips do not intend for their money to go to anyone else besides the person who did their job well. If this continues, I personally, would ask customers not to give tips so none could be claimed to the government. I would take measures further by putting a boycott on tips because what is the point in getting them if they are sliced and diced before you can get the small pennies left If customers really did want to give tips they could give it to them personally when they were not working. How can this be going on and people keep quiet about it It is injustice. Most people who work and know this is going on don\'t really budge because they just get over it and take what they are ultimately given. I think someone should be the voice for these quiet people and take a stand for what is right! I propose a new plan that would give the employees right to pocket the tips they are personally given. And for employees at such locations as Starbucks or other food establishments, take what they are given without having to put it in a \"tip cup\". If that customer wants you to have it, why should you have to split it with other people who did not do the service for that particular individual Billions of dollars each year are claimed and taken in tips and used for causes people may not even support. Tax is important and needed for things like public libraries and other places like that, but enough is already given. Every dollar in a person\'s paycheck is taxed, items you buy are taxed, and you have yearly taxes, but the government really has to sink as low as taxing measly tips We need a change, we need action, and we need this crime to stop being legally committed all the time. This is an exerpt from a article supporting my view and gives a great solution: \"Representative Duncan Hunter (R-Calif.) has introducted legislation to protect service employees\' tips from the hands of the IRS. H.R. 1274 would amend the Internal Revenue Code of 1986 to provide that tips received for certain services shall not be subject to income or employment taxes. The legislation would cover those serving in restaurants, newspaper deliveries, shoe shine services, recreation, taxi drivers, hotels, recreation and cosmetology -- excluding the first $10,000 in annual tips from gross income for income tax purposes. \" (http://www.politicsol.com/editorials/editorial-2001-04-29.html)




http://www.irs.gov/businesses/small/industries/article/0,,id=98401,00.html The IRS rules of tip taxing http://www.politicsol.com/editorials/editorial-2001-04-29.html A great article on stoping tip taxing http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10026509 more information on how tips and bonuses are taxed
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