Is no tax on tips a good idea?

Let's look at how our taxes are spent.

Author

Clint Betts
August 14, 2024

Thank you for subscribing to the newsletter read by the most influential leaders in the world.

In today’s email:

  • Dear Clint: No tax on tips?

  • Upcoming Events: Community Building 101

  • Must Read: Kamala Harris’s Avoidant Campaign

🎙️ Recent interviews: We had the opportunity to interview Cin7 CEO Ajoy Krishnamoorthy, Code42 CEO Joe Payne, and Praxis Labs CEO Elise Smith.

☎️ Upcoming interviews: We will soon be interviewing the following leaders. Click on an upcoming guest’s name to submit a question.

QUESTION
Dear Clint,

It appears the most talked about policy proposal of this election cycle is Trump’s call to end taxes on tips. With both candidates now in agreement, shouldn’t we shift our focus to bigger issues?

Sincerely,

Randy

ANSWER
Dear Randy,

The popular no-tax on-tips policy proposal came from humble beginnings. It started with a waitress. According to Trump, he was having a humble meal at his humble hotel in Las Vegas when a waitress proposed eliminating the taxes on her tips in all humility. What god-fearing politician could refuse such a humble request?

Not Trump, not Kamala. We’re bipartisan now. Don’t call it a comeback; we haven’t been here in years. The only people who don’t like the idea are economists. Be warned — they decree from golden ivory towers — moving forward with such a proposal could cost between $100 billion and $250 billion over a decade.

To give you a sense of the magnitude of that number, in just the past 12 months, the United States has provided $175 billion in aid to Ukraine. The government will allocate almost $1 trillion to the defense department for fiscal year 2024.

The United States is currently sitting on $35 trillion in debt, but that’s not what economists are worried about. Don’t give hard-working Americans a break, they say. We need that money to fund wars and buy votes for our next incomprehensible omnibus spending bill.

For the government, it’s downright convenient to have big guns and a monopoly on violence. Just like the red coats in the 1770s.

So, is implementing a no-tax-on-tips policy a good thing? Of course. We should eliminate most taxes. I don’t understand the opposing argument, given how horrible the government has proven itself to be at allocating money. $35 trillion in debt!?! That’s outrageous behavior. The people responsible for that should not have access to our collective checkbook.

The unfortunate effect of the no-tax-on-tips discourse is that it deflects attention from the much more important conversation about the existential threat our ever-growing debt poses for the future of our country and the importance of the dollar remaining the world’s reserve currency.

Neither candidate or party is willing to have that conversation. Another win for bipartisanship!

Yours,

Clint Betts

Contact Clint

Phone: (385) 217-0670

FEATURED EVENT

Community Building 101

September 13 @ 12 PM

Clint Betts, CEO and co-founder of CEO.com and Silicon Slopes, delivers a detailed and entertaining presentation on the lessons he learned over a decade of building a community.

Members of CEO.com will receive all presentation materials and an exclusive invitation to a Q&A session with Clint following the presentation.

Upcoming Events

How you can get the most out of AI | September 20 @ 12 PM

Awareness in leadership and life | September 27 @ 12 PM

Advanced Community Building | October 4 @ 12:00 PM

MUST READ

WSJ: Kamala Harris’s Avoidant Campaign

In her presidential bid, Kamala Harris is taking a highly strategic and cautious approach, characterized by avoiding press interactions and distancing herself from some of her past policy positions.

Her approach, while minimizing controversy, leaves voters with little insight into her leadership style or policy plans. In contrast, Donald Trump’s more transparent, albeit unpredictable, communication style offers voters a clearer view of his decision-making process.

The Harris campaign needs to balance strategic caution and transparency to establish trust and credibility. Her emphasis on controlled messaging may protect her campaign, but it also risks distancing voters who are looking for meaningful involvement in important issues.

How to predict a recession Ben Carlson, A Wealth of Common Sense

Earn free membership 🔓

Receive a free membership for referring friends & family to our newsletter. 👇

15 referrals - 12-month CEO.com membership

10 referrals - 6-month CEO.com membership

5 referrals - 1-month CEO.com membership

You currently have 0 referrals, only 1 away from receiving Awareness: The Perils and Opportunities of Reality.