To help lift the tax burden from working America’s shoulders, Dr. Paul has recently introduced the Tax Free Tips Act and, if passed, the bill would exempt tips and gratuities from federal 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,” stated Dr. Paul from the House floor.
The Texas Congressman criticized the taxation of tips, arguing that the current tax system punishes workers for doing a good job.
It’s about time.