I had to do a double -take when I heard this come out of Kamala's mouth. I don't think I would have believed it if I hadn't seen her speak it with my own eyes. I am shocked she stooped to this.
Reporting like this is why I subscribe. A proud liberal and registered Democrat from way back when I first became eligible to vote, reasoned and well written words from the other side always capture my attention.
Major tax reform from a Democratic perspective will be impossible from a House and Senate reality check. What is possible is a rider on another bill that forgives the taxes on the first $10K of tips. My favorite Uber driver gives customers only three stars if they don't tip. The actual principal here is that good service should be rewarded (not demanded). I think great teachers should make 100K. Merit in the age of AI and algorithms should make this possible. If tips are tax deductible and that makes people in that biz better performers then what's the pander?
While in Italy we found that leaving a tip of only two euros was considered sufficient. It flies in the face of the 10, 15, 20% we routinely use in the United States. What we learnt was that hospitality employees actually earn a living wage in Italy. Imagine a server being able to make a living with their earned wages as opposed to having to depend on the generosity of their patrons to make ends meet. We also like that all state and local taxes are rolled into the price of goods. How nice would it be to see one price without the additional inclusion of fees and taxes? America is still the greatest country in the world, but there are definitely some things we can take away from other countries to better the lives of our lower wage earners.
It just occurred to me that Trump claimed that Harris photoshopped (i.e. AI'd) a crowd into a photo of her arrival in AF2 on an airport tarmac.
You know...I just went out on FoxNews and they have NOTHING on this story. Isn't it a story either way? If he was telling the truth...it would be a story, right? If he lied about it...shouldn't that be a story too?
Just another example of the lack of integrity of FoxNews and it's "news" reporting.
Taxing tips is less efficient than taxing wages. How much of tipped income is reported accurately? Better to begin with a living minimum wage and no exceptions for servers etc. Besides, I hate tipping. I always find myself at a loss for how much to tip. It makes buying lunch a moral issue. Yuck!
Anyway, I'm saving any criticisms of Harris for after the election. Occasionally, I may have to bite my tongue, but as long as she is all that stands between us and Trump, she is an angel who can do no wrong. Once she's in office, she loses her wings.
Long time reader of Daily Shots, first time contributor.
I hate the idea of a special tax carve-out for tipped wages. I think most of the economic policy advisors in the Dem wheelhouse agree with that.
I don’t think this was a serious statement of policy from the Harris team. I believe this was an example of the newfound appreciation for trolling that the Democrats have found of late. A quick googling of “What percentage of tipped workers are women?” reveals that it is about 70%. Republican operatives in a swing state like Nevada are desperate to get a few percentage points back from women voters that are pushed away (repulsed?) by other conservative policies. Trump’s initial appeal to the service industry with the “no tax on tips” policy was directly aimed at that 70%. To a woman living paycheck to paycheck, I would have to imagine that in the contest between securing a woman’s right to choose, etc. or taking home extra money every night, they are going to strongly consider money first. Trump really doesn’t offer very many positive things for women. With VP Harris’s statement that she is going to get rid of taxes on tips, she has done two things. First, the calculous for the woman living paycheck to paycheck has changed. Now she can vote to protect women’s rights and take home more money. Second, by mirroring Trump’s one good policy proposal, (again, I don’t think it is…) she has taken something from him. It is already driving folks on the right nuts. I have seen multiple versions of right-wing memes showing Trump and Harris in school with Harris looking over and copying Trump’s work, a picture of a trumpy-looking Harrris, etc.
I think in the past the Democrats have been too timid in hitting back. (When they go low, we go high…) I’m here for all of it- the reality based tip policy stuff, as well as the completely made up couch stuff. It’s good to see them finally scooping up a bit of mud and hurling it back. The Republicans shouldn’t be whining now just because the Dems have had better aim.
Not to change the subject, but wouldn't tipped workers benefit more from earning a living wage than they would from not having to pay taxes on their tips? Especially since many tipped workers still won't earn enough to make ends meet even if they don't pay taxes on the tips.
I think that's a much more important discussion, and maybe a better response to the proposal.
Even as someone who would be considered fiscally responsible, I have absolutely no problem with her no tax on tip for service workers. For one thing, the fiscal impact is de minimis. A large portion of these people fall below the minimum tax rate, so they don't pay any fed income tax anyway. Those that do have a tax liability probably only have a small portion that falls within the 10% tax bracket. If done right with guardrails to prevent abuse, which she is outlining, it's not a big deal, and if it helps us carry Nevada, then it has a great ROI. A few limits on what jobs the exemption applies to, so that you don't have professionals (ie. lawyers and financial advisors, etc.) structuring their fees to qualify as tips. Also put a limit on it, such as a max of $5/hr, or $10hr equivalent being exempt from taxes. Which would be mean only the first $10K or $20K is all that would be exempt. Trump's proposal is not as thought out and is really just pandering.
"this is how I began that first Morning Shots, on February 12, 2024:"
It was kind of funny looking through the comments on that article. Almost 1000 comments total, and lots of people super mad at Bill. It's amusing to see our takes that haven't aged well, and to understand that we should have more humility and less certainty when we opine on current events.
No taxing tips is a better message than cutting taxes on lower income Americans because everyone knows about tips but who are these lower income Americans? It's all a marketing messaging thing like defunding the police. Ask Donny Deutsch about it. He always said 'defund the police' was a stupid idea, but a great message because it was easily understood. People can easily rally around simple messages and defund the police was of that ilk.
I loved the reference to Federalist 1. Not often that we actually go back in our history for reference. Unlike those six pseudo originalists that are on the Supreme Court. They only claim to have read the Federalist Papers and the notes from the Constitutional Convention and yet, their decisions look more like stretches and contortions to make the originalist argument.
Kind of like my favorite meme on the internet these days. "You just cannot trust anything on the internet." - A. Lincoln, 1871
Except "Defund the Police" was the exact opposite.
It was a bunch of great policy ideas around shifting resources and responsibilities from overburdened cops to community services and non-violent workers that actually reduce crime and help citizens.
Unfortunately the motto turned it into a millstone that tried to sink Democratic electoral hopes.
No tax for lap dancers; but full tax for daycare workers?
I had to do a double -take when I heard this come out of Kamala's mouth. I don't think I would have believed it if I hadn't seen her speak it with my own eyes. I am shocked she stooped to this.
I read this after the X glitch tonight. ha! That was actually worse than the De Santis train wreck. Good call. 😊
The Musk/Trump "conversation" was actually an informercial.
On second thought, it was a "disinformercial."
Reporting like this is why I subscribe. A proud liberal and registered Democrat from way back when I first became eligible to vote, reasoned and well written words from the other side always capture my attention.
Major tax reform from a Democratic perspective will be impossible from a House and Senate reality check. What is possible is a rider on another bill that forgives the taxes on the first $10K of tips. My favorite Uber driver gives customers only three stars if they don't tip. The actual principal here is that good service should be rewarded (not demanded). I think great teachers should make 100K. Merit in the age of AI and algorithms should make this possible. If tips are tax deductible and that makes people in that biz better performers then what's the pander?
The LA Times had an article yesterday that the person Trump was in a helicopter with was LA City Councilman Nate Holden, and they actually did make an emergency landing. Holden, now 95, confirmed the story. Here's a link: https://www.latimes.com/california/story/2024-08-10/brown-wasnt-on-that-frightening-helicopter-ride-with-trump-heres-who-was
Confusing his favorite Black guys again...OY
While in Italy we found that leaving a tip of only two euros was considered sufficient. It flies in the face of the 10, 15, 20% we routinely use in the United States. What we learnt was that hospitality employees actually earn a living wage in Italy. Imagine a server being able to make a living with their earned wages as opposed to having to depend on the generosity of their patrons to make ends meet. We also like that all state and local taxes are rolled into the price of goods. How nice would it be to see one price without the additional inclusion of fees and taxes? America is still the greatest country in the world, but there are definitely some things we can take away from other countries to better the lives of our lower wage earners.
It just occurred to me that Trump claimed that Harris photoshopped (i.e. AI'd) a crowd into a photo of her arrival in AF2 on an airport tarmac.
You know...I just went out on FoxNews and they have NOTHING on this story. Isn't it a story either way? If he was telling the truth...it would be a story, right? If he lied about it...shouldn't that be a story too?
Just another example of the lack of integrity of FoxNews and it's "news" reporting.
Taxing tips is less efficient than taxing wages. How much of tipped income is reported accurately? Better to begin with a living minimum wage and no exceptions for servers etc. Besides, I hate tipping. I always find myself at a loss for how much to tip. It makes buying lunch a moral issue. Yuck!
Anyway, I'm saving any criticisms of Harris for after the election. Occasionally, I may have to bite my tongue, but as long as she is all that stands between us and Trump, she is an angel who can do no wrong. Once she's in office, she loses her wings.
Hi Andrew!
Long time reader of Daily Shots, first time contributor.
I hate the idea of a special tax carve-out for tipped wages. I think most of the economic policy advisors in the Dem wheelhouse agree with that.
I don’t think this was a serious statement of policy from the Harris team. I believe this was an example of the newfound appreciation for trolling that the Democrats have found of late. A quick googling of “What percentage of tipped workers are women?” reveals that it is about 70%. Republican operatives in a swing state like Nevada are desperate to get a few percentage points back from women voters that are pushed away (repulsed?) by other conservative policies. Trump’s initial appeal to the service industry with the “no tax on tips” policy was directly aimed at that 70%. To a woman living paycheck to paycheck, I would have to imagine that in the contest between securing a woman’s right to choose, etc. or taking home extra money every night, they are going to strongly consider money first. Trump really doesn’t offer very many positive things for women. With VP Harris’s statement that she is going to get rid of taxes on tips, she has done two things. First, the calculous for the woman living paycheck to paycheck has changed. Now she can vote to protect women’s rights and take home more money. Second, by mirroring Trump’s one good policy proposal, (again, I don’t think it is…) she has taken something from him. It is already driving folks on the right nuts. I have seen multiple versions of right-wing memes showing Trump and Harris in school with Harris looking over and copying Trump’s work, a picture of a trumpy-looking Harrris, etc.
I think in the past the Democrats have been too timid in hitting back. (When they go low, we go high…) I’m here for all of it- the reality based tip policy stuff, as well as the completely made up couch stuff. It’s good to see them finally scooping up a bit of mud and hurling it back. The Republicans shouldn’t be whining now just because the Dems have had better aim.
Cheers!
Greg
Not to change the subject, but wouldn't tipped workers benefit more from earning a living wage than they would from not having to pay taxes on their tips? Especially since many tipped workers still won't earn enough to make ends meet even if they don't pay taxes on the tips.
I think that's a much more important discussion, and maybe a better response to the proposal.
Fair pay for fair work.
Even as someone who would be considered fiscally responsible, I have absolutely no problem with her no tax on tip for service workers. For one thing, the fiscal impact is de minimis. A large portion of these people fall below the minimum tax rate, so they don't pay any fed income tax anyway. Those that do have a tax liability probably only have a small portion that falls within the 10% tax bracket. If done right with guardrails to prevent abuse, which she is outlining, it's not a big deal, and if it helps us carry Nevada, then it has a great ROI. A few limits on what jobs the exemption applies to, so that you don't have professionals (ie. lawyers and financial advisors, etc.) structuring their fees to qualify as tips. Also put a limit on it, such as a max of $5/hr, or $10hr equivalent being exempt from taxes. Which would be mean only the first $10K or $20K is all that would be exempt. Trump's proposal is not as thought out and is really just pandering.
Bill and Andrew,
Since you hit your 6-month anniversary, do we get friendship bracelets now?
😁
"this is how I began that first Morning Shots, on February 12, 2024:"
It was kind of funny looking through the comments on that article. Almost 1000 comments total, and lots of people super mad at Bill. It's amusing to see our takes that haven't aged well, and to understand that we should have more humility and less certainty when we opine on current events.
No taxing tips is a better message than cutting taxes on lower income Americans because everyone knows about tips but who are these lower income Americans? It's all a marketing messaging thing like defunding the police. Ask Donny Deutsch about it. He always said 'defund the police' was a stupid idea, but a great message because it was easily understood. People can easily rally around simple messages and defund the police was of that ilk.
I loved the reference to Federalist 1. Not often that we actually go back in our history for reference. Unlike those six pseudo originalists that are on the Supreme Court. They only claim to have read the Federalist Papers and the notes from the Constitutional Convention and yet, their decisions look more like stretches and contortions to make the originalist argument.
Kind of like my favorite meme on the internet these days. "You just cannot trust anything on the internet." - A. Lincoln, 1871
Except "Defund the Police" was the exact opposite.
It was a bunch of great policy ideas around shifting resources and responsibilities from overburdened cops to community services and non-violent workers that actually reduce crime and help citizens.
Unfortunately the motto turned it into a millstone that tried to sink Democratic electoral hopes.
You're saying what I was trying to say. It was a horrible slogan for great ideas.