March 16, 2011 - Issue: Vol. 157, No. 40 — Daily Edition112th Congress (2011 - 2012) - 1st Session
THE TAX FREE TIPS ACT; Congressional Record Vol. 157, No. 40
(Extensions of Remarks - March 16, 2011)
Text available as:
Formatting necessary for an accurate reading of this text may be shown by tags (e.g., <DELETED> or <BOLD>) or may be missing from this TXT display. For complete and accurate display of this text, see the PDF.
[Extensions of Remarks] [Pages E506-E507] From the Congressional Record Online through the Government Publishing Office [www.gpo.gov] THE TAX FREE TIPS ACT ______ HON. RON PAUL of texas in the house of representatives Wednesday, March 16, 2011 Mr. PAUL. Mr. Speaker, I rise to help millions of working Americans by introducing the Tax Free Tip Act. As the title suggests, this legislation exempts tips 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 the tip, taxing tips punishes workers for doing a superior job! Many service-sector employers 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. [[Page E507]] ____________________