Taxing tips was a Republican idea implemented in 1982 by the Reagan administration after his first round of tax cuts blew a hole in the budget. They filled the hole with a range of regressive tax increases. www.investopedia.com/terms/t/tefr...
TEFRA is a federal law enacted in 1982 to increase revenue through a combination of spending cuts, tax increases, and tax reform measures.
Aimed squarely at the middle class.
So was taxing Social Security. Also tax legislation originates in the House who is in charge there right now it escapes me
So if Trump claims that the Democrats are trying to steal his idea of eliminating taxes on tips, it’s worth remembering that Democrats fought for that in 1982 but lost out to the GOP tip taxing plan.
Also not taxing tips now is a scam to keep the minimum wage down. So we really should just tax them and raise the minimum wage appropriately
I was just out of my teen years and learning the hard way what "regressive" means.
Was this the only good thing Reagan ever did?
My personal favorite was the federal tax on university scholarships. Charming.
Reagan also started racing grad student fellowships. Maybe also TA stipends (I don’t know if they were already taxed; fellowships definitely were not).
Reread your own link. Tips were taxed long before Reagan. TEFRA increased enforcement of it.
Don't forget taxing SSI and SDI.. .which Democrats never got around to fixing.... something for Kamala and Tim to sink their teeth into, perhaps?