I followed the chain back to this: Good Article about ongoing Social Security Funding on Market Watch It was in regard to the proposal to not tax tips. Maybe you need to expand the quote to see what was highlighted.
I responed to this.
OK, you must have misunderstood what he was referring to. But if you refer back to his post and specifically what he highlighted prior to that response, you will see he was talking about the proposal not to tax tips, meaning he thinks the proposal was only for exempting tips from federal tax, not an exemption for SS & state taxes on tips. Oh what the heck, here is the screenshot of that post:
Yes. This is what I had meant, no Fed tax on Tips. Not referring to the no tax on SS.
I looks like you are correct. The proposed legislation for not taxing tips applies the exemption only to the federal income tax as a non-itemized deduction and a $25,000 cap on the deduction. It doesn't apply to payroll taxes, which still need paid by the employer and employee. It doesn't apply to state income taxes, either, but states could make their own exemptions.
Interesting and unusual carveout. I wonder if some voters viewed "no tax on tips" as not any taxes on tips and not just no federal income taxes.
I viewed it as just that, not Fed tax on tips. Fed gov't doesn't dictate State taxes, and I guess I recognized "tax" and "SS" as two different things as well.
One aspect going under the radar a bit is that for service workers that get significant TIP income, FICA and SE taxes are most likely the majority of their federal tax burden. There's lots of lower paid gig workers who pay no Fed income tax at all, but pay FICA and SE.
The phrase “no taxes on tips” is very inclusive. Perhaps the advocates should rephrase it as “no federal income tax on tips” if that is what they mean. It’s hard to discuss these things when people don’t define terms such as “fair share” “victimless crimes” “ highly processed foods” to give a few examples.
I think the idea, like many tax benefits, is to help lower earners. That is primarily where tips are earned. I am sure they will enact that limits the "High Earner" from claiming part of that income as tips if that is what you are worried about.
Can't we simply just stop tipping to protest this move if it happens?
Do you like spit in your food?
Do you tip before you get your food? Just don't go back....I think tipping is BS for the most part anyways.Do you like spit in your food?
Honestly that is about the only reason theses days for tipping. Feel like my food is being held for ransom. I mean why does anyone deserve a tip for just doing their job?Do you like spit in your food?
Sounds like you would be more comfortable eating at home.
) in some cases. 
I was thinking similar. I do receive tips often after doing the j*b. Usually $1-300. If I went to a cost + tip biz plan, I will most likely not make as much in my estimation. I can see some massive loopholes coming if they do it though.
