Tax Free Tips Act HR: 3664

[Hi Ho]

Get this flier out to every waitress and bartender you can! Do you have any idea how many people waitresses and bartenders come into contact with? This is one blockbuster of an idea.
http://files.meetup.com/518875/TaxFreeTipAct2.pdf

Introducing the Tax Free Tips Act

Ron Paul Speech to Congress

September 25, 2007

Madam Speaker, I rise to help millions of working Americans by introducing the Tax Free Tips Act. As the title suggests, this legislation makes tips exempt from federal income and payroll taxes. Tips often compose a substantial portion of the earnings of waiters, waitresses, and other service-sector employees. However, unlike regular wages, a service-sector employee usually has no guarantee of, or legal right to, a tip. Instead, the amount of a tip usually depends on how well an employee satisfies a client. Since the amount of taxes one pays increases along with the size of tip, taxing tips punishes workers for doing a superior job! Many service-sector employees are young people trying to make money to pay for their education, or single parents struggling to provide for their children. Oftentimes, these workers work two jobs in hopes of making a better life for themselves and their families. The Tax Free Tips Act gives these hard-working Americans an immediate pay raise. People may use this pay raise to devote more resources to their children's, or their own, education, or to save for a home, retirement, or to start their own businesses. Helping Americans improve themselves by reducing their taxes will make our country stronger. I, therefore, hope all my colleagues will join me in cosponsoring the Tax Free Tips Act.

That is a bill introduced on 9/25 by Republican Presidential Candidate Ron Paul: The man for the people. If you ever had any doubts about which man would protect the people and not the special

---

interests, this should alleviate them. Ron Paul has legislation on the table right now that would exempt tips (gifts) from the Income Tax that taxes wages. Finally, someone who understands how hard these folks work for their money and how tips are not usually required and are based on how well a person does their job. Tips are gifts, they are given when people please others. Most people in service industries don't even make minimum wage (they are exempted out because they get tips), then to add insult to injury, the IRS usually determines ahead of time just how much they should be making and taxes them accordingly whether they make that much in tips or not. Service folks, you have a shot at being able to keep your money with no fear that the IRS will be looking over your shoulder. Vote for the man who will protect your rights: Ron Paul. He needs your help as well. This bill will not pass without a fight. Please everyone, call your congressmen and tell them you support the Tax Free Tips Act, also known as HR 3664! As soon as you are done with that, run, to vote in the Republican Primary so you can vote for this man for President. If you’re not registered to vote, register now! He is supporting you. Now it is time for you to support him! Pass this on!!!! Post this in the kitchen, break room, etc. Tell everyone you know. But you must call Congress about this. Call them, write them, email them. Get busy. You have just been handed one of the greatest gifts of your lifetime. Don't blow it! You can look up your Representative online by going to
http://www.house.gov/writerep or calling the US House switchboard at (202) 225-3121.

www.RonPaul2008.com

[Codger]

This is interesting from the "wages are not taxible" perspective. Tips would basically be a gain on your other wage based earnings and almost seem like they should be the only taxable portion. Now don't get all crazy about this, but it's interesting to think about from that perspective. If your work is your basis against the wages you make and the tips are just a bonus on top of that, they would have no additional basis as you would not be able to estimate a dollar amount for tax purposes.

Just playing with ideas. Taxes are so goofy...

[Waypoint-Trading]

Aren't tips a gift from one person to another??

After all they are "given", so how can they be taxed if they are not over $11,000 per year?

[jman]

The VERY PROMPT reply from my congressman in regards to HR: 3664. I didn't make a copy of what I sent unfortunately. He completely ignored my challenge to show a law making us liable for the income tax, and said nothing about what I had to say about inflation. But I give him serious credit for getting back to me .. I sent an email less than an hour ago. He admits he needs to review it more, but sadly implies this debt is ours to pay over failed governmental policy....I disagree.


Dear Mr. **Took out my name**:

Thanks for your message in support of H.R. 3664, the Free Tips Act. I appreciate you bringing this bill to my attention.


I have worked with Rep. Ron Paul over the years on a variety of issues, including sovereignty issues related to failed U.S. trade policies like NAFTA and the WTO.

With respect to H.R. 3664, I need to review H.R. 3664 in more detail before reaching a final conclusion, but upon an initial reading, I have some concerns with the bill. For example, H.R. 3664 exempts tip income from all income and payroll taxes. If tips are not included as income, then that could lead these individuals to have lower Social Security benefits in the future. Given that individuals who work for tips are often lower wage individuals and don't have a lot of savings, a reduced Social Security benefit would be particularly harmful.

I also have no idea how much H.R. 3664 would cost. As you may know, the federal budget is in deficit by around $500 billion this year and for every year for the foreseeable future. That means that unless a tax cut is offset by spending cuts or tax increases elsewhere, the deficit will just get worse.

Thanks again for writing. Please keep in touch.

Sincerely,

Rep. Peter DeFazio
Fourth District, OREGON

Unlike some very stupid ideas that have been proposed here, this idea is excellent!

DeFazio is apparently retarded. Or evil. Tax revenues cannot even begin to offset the ever growing national debt and they're already confiscating 50%+ of our money through direct and indirect taxes. Social security will not be around much longer for anybody. It was a stupid ponzi scheme that is creating two or three generations of bag holders.

[Hi Ho]

here's a PDF that will fit on one page