From: -hh <recscuba_google@huntzinger.com>
Newsgroups: can.politics,alt.politics.trump,alt.fan.rush-limbaugh
Subject: Re: "Bat poop crazy"
Date: Wed, 30 Jul 2025 07:24:00 -0400
Organization: A noiseless patient Spider
On 7/30/25 05:59, Governor Swill wrote:
> On Tue, 29 Jul 2025 21:18:58 -0000 (UTC), pothead wrote:
>
>> I wouldn't consider no taxes on tips, overtime and additional bonus added
>> for seniors on SS increased SALT deduction. something the rich are interested in.
>
> Most tips aren't declared anyway and so aren't taxed.
84%, as per this cite:
<http://archives.cpajournal.com/old/10428232.htm>
> The change mostly means that employers now have to pay both sides
> of FICA which will increase their labor cost.
Good catch; I'd forgotten about that provision, plus even if they're
only required to pay the employer half, that's still ~8% expense on
those tip amounts. If we oversimplify and say that its 9% and for
restaurant servers that tips are a third of their income, this is a
quick 3% increase in labor costs for their employer.
As I commented yesterday evening:
"Which means that this cap is more designed to send a message to those
who can re-categorize their income to limit their level of fraud/abuse."
> If overtime is not taxed weekly, smaller refunds will result each
> spring.
>
> The middle class may get some benefit from a higher SALT deduction.
Not really all that much, as the Standard Deduction remains relatively
large because what used to be, because personal deductions got rolled up
into it. Previously, with the two split, itemizers only had to exceed
the Standard, and kept the personal deductions: the 2017 TJCA had some
pretty clever slights-of-hand in this fashion.
> The rich may not care about any of this because it won't drive up
> their tax bills. What it will do is drive the deficit.
Like how we've heard some who've claimed "an almost $6k increase in
taxes if the BBB did not pass." ... but the income levels required to
have that much of a one year savings is $400K+ if filing Single. Its
not as profound for MFJ (figure $160K), but this is just the first year
look before any of the middle class's temporary cuts start to phase out.
> Trump's tariffs will mitigate some of that deficit but the resultant
> inflation will eat up the middle and working classes.
Tariff revenue is minuscule in comparison to the 1%'er tax breaks...
...plus if the tariffs actually accomplish what they've been claimed
that they're for (re-shoring manufacturing) they're a decreasing revenue
source that will never grow larger.
-hh