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In reply to the discussion: Democrats Need A PR Firm - They Have No Unified Message [View all]Tickle
(4,131 posts)3. Here's my answer on how does no tax on tips
At first glance, no tax on tips and no tax on overtime sounds like it helps working people and it can. But heres how the rich could benefit too:
1. Loopholes get exploited: High-income earners with flexible compensation deals (like executives or business owners) might start calling big chunks of their bonuses or extra pay overtime to avoid taxes. If there's no strict limit on what counts as "overtime," they could game the system.
2. Business owners save more: Employers (especially wealthy ones) might shift how they pay workers giving more tips or overtime instead of regular wages. That can reduce their payroll tax obligations too. Less taxes paid = more profit kept.
3. Uneven impact: A rich person getting tax-free overtime on a $200/hour consulting gig gets a bigger break than a waitress getting tax-free tips on $5/hour. The rich save more simply because their numbers are bigger.
In short: good idea in theory for workers but without strict guardrails, the rich find ways to use it more effectively, and disproportionately benefit.
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We have needed one for decades, and it is a mystery to me why we don't get one.
Scrivener7
May 27
#1
Right? I really believed the party was run like a machine but I guess I was completely wrong
Iris
May 27
#25
Maybe you should start a thread about that. Answering THIS thread that way is really just saying, "Shut up."
Scrivener7
May 27
#46
It does seem to come easily to you. And again, your questions in response to the topic of THIS thread
Scrivener7
May 27
#49
If "leaders" can't get this basic message out (sent by Bernie) then ... I just don't know.
usonian
May 27
#12
Indeed- but Bernie and AOC's message is the opposite of what PR firms would recommend
Fiendish Thingy
May 27
#24
We darn sure need something. Unfortunately, even if we get rid of the $470 B a year from tax cuts to wealthy,
Silent Type
May 27
#31
What they need is to stop playing Trumps game of appealing to the Republican Dark Side.
Ping Tung
May 27
#51
Dem leaders should be able to own the news cycle calling out the GOP bill, but here we are.
themaguffin
May 27
#52