Tax Free Tips Act

[Tip20!]

Tax Free Tips Act

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.

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Take action now! Call your congressman toll-free at 1-800-614-2803. Urge him/her to cosponsor and support the Tax Free Tips Act which was introduced by Congressman Ron Paul. The suggested message is: “If this bill has not become law by the 2008 primary date, I will NOT support you in your re-election campaign.” Then, go to http://www.RonPaul.MeetUp.com and join your local Ron Paul Meet Up Group. Ask everyone you know to follow this procedure!
Ron Paul for President website - http://www.RonPaul2008.com
Ron Paul Online Library website - http://www.RonPaulLibrary.org

This information is provided by supporters of Ron Paul for President and is not approved by the Ron Paul 2008 Presidential Campaign office.

[Tip20!]

Letter back from Senator Norm Coleman on the Tax Free Tips Act of 2007 (H.R. 3664)

Dear Mrs. xxxx :

Thank you for contacting me regarding the Tax Free Tips Act of 2007 (H.R. 3664). While I have long supported tax relief for America ‘ workers, I believe that this legislation would give an unfair tax advantage to tipped workers.

As you may know, H.R. 3664 was introduced by Representative Ron Paul (R-TX) on September 25, 2007 and awaits action by the House Ways and Means Committee. This legislation would exempt tips and gratuities from federal income and payroll taxes. While tips may be considered part of regular compensation, it is important to recognize that tips are ultimately based on the performance of the worker. As a matter of fairness, I believe that performance-based pay - be it in the form of tips or bonuses - should be accorded the same tax treatment.

While no similar legislation has been introduced in the Senate, please know that I will keep your thoughts in mind should this bill reach the Senate floor.

Thank you once again for contacting me. I appreciate hearing from you and hope you will not hesitate to contact me on any issue of concern to you.

Sincerely,
Norm Coleman
United States Senate

[evilwaitress3]

I think it's a great idea, but usually the gov't will do what it can in order to get it's share.

[TopCoat]

You've got that right! blood sucking bastards!
They never seem to get that the more money in our pockets the more we will SPEND!