Thread: Introducing the Tax Free Tips Act : Ron Paul

Big Tipper Ron Paul
Introducing the Tax Free Tips Act : Ron Paul Speech to Congress
September 25, 2007

“Madam Speaker, I rise to help millions of working Americans by introducing the Tax Free Tips Act.

As the title suggests, this legislation makes tips exempt from federal income and payroll taxes. Tips often compose a substantial portion of the earnings of waiters, waitresses, and other service-sector employees. However, unlike regular wages, a service-sector employee usually has no guarantee of, or legal right to, a tip. Instead, the amount of a tip usually depends on how well an employee satisfies a client. Since the amount of taxes one pays increases along with the size of tip, taxing tips punishes workers for doing a superior job!

Many service-sector employers are young people trying to make money to pay for their education, or single parents struggling to provide for their children. Oftentimes, these workers work two jobs in hopes of making a better life for themselves and their families. The Tax Free Tips Act gives these hard-working Americans an immediate pay raise. People may use this pay raise to devote more resources to their children’s, or their own, education, or to save for a home, retirement, or to start their own businesses.

Helping Americans improve themselves by reducing their taxes will make our country stronger. I, therefore, hope all my colleagues will join me in cosponsoring the Tax Free Tips Act. â€

Man is he right! I remember working 3rd shift waitress so I didn't have to pay a babysitter when I was first married. Work a 10 hour shift for 1.90 a hour and come home with 12.00 in tips for 10 hours. Not even close to minimum wage even 20 years ago.

i remember claiming only $2 a day when i was a waiter... take that system!

Well, then by the same token, people who work on commission shouldn't have to pay taxes either. I mean, they have no guarantee of their earnings either.

I don't know...I think that everybody should have to pay their fair share of taxes. To say that people who earn money that they really have no guarantee of earning, shouldn't have to pay taxes, is ridiculous. Regardless of how you earn it, you earned it, and it is INCOME. And all Americans are subject to income taxes.

So I have to say that I think this one is way over the top. Sorry, but that's my humble opinion.

Originally Posted by americangirl

Well, then by the same token, people who work on commission shouldn't have to pay taxes either. I mean, they have no guarantee of their earnings either.

I don't know...I think that everybody should have to pay their fair share of taxes. To say that people who earn money that they really have no guarantee of earning, shouldn't have to pay taxes, is ridiculous. Regardless of how you earn it, you earned it, and it is INCOME. And all Americans are subject to income taxes.

So I have to say that I think this one is way over the top. Sorry, but

actually Ron Paul wants to eliminate the IRS taxes on wages completely. You work a job and trade your time for money. You make no income.
Fair share of taxes? you are taxed when you buy every day things. If you have more money to spend, you can help the economy alot more. If we got back to a free monetary system and quit wasteful government spending, get rid of the welfare state bring ALL of our troops home, we would have more than enough money and peole wouldn't have to work so hard and for less money and time.hat's my humble opinion.

actually Ron Paul wants to eliminate the IRS taxes on wages completely. You work a job and trade your time for money. You make no income.
Fair share of taxes? you are taxed when you buy every day things. If you have more money to spend, you can help the economy alot more. If we got back to a free monetary system and quit wasteful government spending, get rid of the welfare state bring ALL of our troops home, we would have more than enough money and peole wouldn't have to work so hard and for less money and time.hat's my humble opinion.

The Government has too many ways to get more than a fair share from taxpayers.

I think Ron Paul has a good idea. There aren't many waitresses and waiters that get more than minimum wage as a basic pay. I see no reason for them to have to pay taxes on what people give them for good service. The Govt. has already collected taxes on the money that was given to these people by the person giving it to them, so taxing it again is double dipping.

You put your money into a CD to earn a little interest...but if you take money out you don't just pay taxes on just the interest earned but the whole amount. Double dipping again, and again, and again.

Originally Posted by Shad

The Government has too many ways to get more than a fair share from taxpayers.

I think Ron Paul has a good idea. There aren't many waitresses and waiters that get more than minimum wage as a basic pay.

From what I have heard and seen, there are some employers that pay waiters and waitresses less than minimum wage because they know their tips are coming.

Originally Posted by americangirl

Well, then by the same token, people who work on commission shouldn't have to pay taxes either. I mean, they have no guarantee of their earnings either.

I don't know...I think that everybody should have to pay their fair share of taxes. To say that people who earn money that they really have no guarantee of earning, shouldn't have to pay taxes, is ridiculous. Regardless of how you earn it, you earned it, and it is INCOME. And all Americans are subject to income taxes.

So I have to say that I think this one is way over the top. Sorry, but that's my humble opinion.

That's exactly what I used to believe americangirl. Until I saw the documentary "America: From Freedom To Fascism: http://www.youtube.com/watch?v=N331kGvh0U0, and read Ron Paul's writings:

Could America exist without an income tax? The idea seems radical, yet in truth America did just fine without a federal income tax for the first 126 years of its history. Prior to 1913, the government operated with revenues raised through tariffs, excise taxes, and property taxes, without ever touching a worker's paycheck.

In the late 1800s, when Congress first attempted to impose an income tax, the notion of taxing a citizen's hard work was considered radical! Public outcry ensued; more importantly, the Supreme Court ruled the income tax unconstitutional. Only with passage of the 16th Amendment did Congress gain the ability to tax the productive endeavors of its citizens.

Yet don't we need an income tax to fund the important functions of the federal government? You may be surprised to know that the income tax accounts for only approximately one-third of federal revenue. Only 10 years ago, the federal budget was roughly one-third less than it is today. Surely we could find ways to cut spending back to 1990 levels, especially when the Treasury has single year tax surpluses for the past several years. So perhaps the idea of an America without an income tax is not so radical after all.

The harmful effects of the income tax are obvious. First and foremost, it has enabled government to expand far beyond its proper constitutional limits, regulating virtually every aspect of our lives. It has given government a claim on our lives and work, destroying our privacy in the process. It takes billions of dollars out of the legitimate private economy, with most Americans giving more than a third of everything they make to the federal government. This economic drain destroys jobs and penalizes productive behavior. The ridiculous complexity of the tax laws makes compliance a nightmare for both individuals and businesses. All things considered, our Founders would be dismayed by the income tax mess and the tragic loss of liberty which results....

To read the rest go to:
http://www.ronpaullibrary.org/document.php?id=199


As Americans, we believe what we've been taught without question. I think it's time we start thinking differently. Independently. We need to start being more open minded to other possibilities. Ask questions. Demand answers.

"One thing is clear. The founding fathers NEVER intended a nation where citizens pay nearly half of everything they earn to government." Ron Paul

Actually, I have NO problem with abolishing the income tax...I think it's a great idea! However, I don't think you should abolish income tax for one faction of workers and not all. If you're going to say that servers in restaurants don't have to pay taxes on their tips, then NOBODY should have to pay taxes on any of their income.

That's all I meant when I said Ron Paul was over the top on this. But if he wants to abolish the income tax, well then he has my support!