Davin News Server

On Wed, 30 Jul 2025 07:24:00 -0400, -hh
<recscuba_google@huntzinger.com> wrote:

>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.

Which is why Congress switched from tariffs to income tax at the start
of the last century.

-- 
Superman is an illegal immigrant!

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