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Eliminate Taxes on Tip Income

Created by T.O. on January 20, 2013

The Federal Government should eliminate all taxes on tip income. People that work for tips generally work physically demanding jobs for relatively low wages. If they do their job well, a customer may give them a little extra. Why should it be the government's business if a customer leaves a waitress a $5 or $10 tip? As a tip is generally not required, it is essentially a gift. Currently the IRS doesn't tax gifts unless they are over $11,0000. So if a single mom serves Bill Gates breakfast and he leaves her 10 bucks it gets taxed but if he walks out and gives a homeless guy $10k it doesn't get taxed. That's not fair. Historically tips were not taxed until 1984 when the Democrat controlled Congress passed the "Balanced Budget Act of 1984." Please help end this unfairness.

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