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Want a Tip? Reduce Spending.
The Inflation Reduction Act of 2022, which does a lot of things but reducing inflation is not one of them, provided the IRS with an additional 80 billion dollars to hunt down tax cheats. With the loose change, the IRS planned to hire up to 88 thousand additional agents.
They said they were going after the rich folks. But, it also gave the green light to tighten the efforts against workers who primarily earn their income from tips.
The bill passed when Vice President Kamala Harris voted “yay” to break the 50-50 Senate deadlock and was signed into law in August of 2022.
The bloated IRS, chasing tip earners, reminds us of a lion who runs down a field mouse, a tasty treat. The problem with doing so is that he burns more calories than the consumption of the mouse provides. But, we digress.
Fast forward to the 2024 campaign for President. A month ago, former President Donald Trump announced that he would eliminate taxes on tips if he were reelected. 
Nevada’s casino industry cheered.
Last week, VP Harris addressed a Nevada rally that numbered in the tens of thousands or tens of hundreds depending on how much or little AI was involved. Surprise, surprise. She announced that she would eliminate taxes on tips if she gets elected. Nevada’s casino industry cheered.
That is a direct reversal of the Act she voted for just two years ago. This wouldn’t be about winning the swing state, would it?
Does that make her a flip-flopping copycat? It’s a rare combo.
Take a politician at their word at your peril. But, one of them will take the Oval Office. Plenty of bartenders, waitresses, and blackjack dealers will be happy.
But, will it cause plenty of IRS workers to lose their job? After all, you won’t need to chase the underreported tips of those chasing tips for a living.
It won’t.
The government never “cuts” anything. They only throw the word around like a $5 casino chip.
It’s like the Act. Spending doesn’t reduce inflation.
In short, Congress decided it had a collection problem. Then it funded a “solution.” Now the two candidates don’t think it’s a problem. And, when/if it’s repealed there won’t be a single government job cut from those added. Has there ever?
The real problem is spending. But cutting spending doesn’t win votes, it only loses elections.
That’s why we can’t talk about that.
Comment section
Tasty Tips.
Now I can cut back on tipping, since they won’t pay taxes on my generosity.
Should work once, but I wouldn’t go back to the same joint.
$80 billion for 88,000 IRS agents means each agent’s salary is $909,000 plus government benefits/pension. Doctors don’t make that much.
Where do I sign up?
Well, they hired other personnel as well as new equipment and processes. That only makes it super expensive and ridiculous not absurd.
Two things can radically reduce inflation and lower costs in the marketplace. First to your point, reduce spending. They are handing out money faster than Elon can send up rockets. It’s so out of control that we may never see any kind of balanced budget in our lifetime.
Second, Get the oil flowing. Not exclusively but nothing works over the grim reaper like black gold. Uncle Jed had it right, whew doggie! It’s a documented fact that more than a third of all food costs are transportation. And we all know how trucks work and it’s not solar or wind.
But Come Allah has no understanding of any of this. She’s a bad bet for sure.
Come Allah is solid work.
Saw where domestic production is up by 22% year over year. But me thinks that is but a part of the story. It’s how far down early in the administration before the rebound that really matters. Oh, and about that strategic reserve?
Drill baby drill. And get back to exporting oil so that we have strategic benefits and positions elsewhere. You want to turn the Arab countries into rock throwers? Take away their oil vacuum.
No doubt about it. At least Come Allah understands the benefits of a good drill.
I see wha…
mhm mhm mhm
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