I just came to the conclusion that Trump’s plan to make earnings from tips not be taxed by federal income taxes could be huge. Who is to say what constitutes a tip?
A dying father could tip his kids for decades of being good people to avoid unconstitutional death tax. A similar approach could be used to keep your money instead of being robbed by the federal government via the dozens of tax categories.
Who is to say what is "income" for that matter.
Last week, California's income tax agency had a board meeting. During the meeting, there was a long discussion about the free income tax filing portals that are being developed by California and the IRS. The tax filing portals are being developed independently from one another, but they are working on a deal to link the portals in 2025. One of the board members was freaking out that the deal with the IRS hadn't been ratified yet and was emphatic that the deal needed to be set in stone before Trump came into office and voided the program. She asked a bazillion questions about why it was taking so long and why the portals connecting the IRS and CA couldn't be completed by the time Trump took office.
The idea that Trump would stop the IRS from having a free tax filing portal made no sense to me. The idea signing a deal between the IRS and CA before Trump got into office would stop Trump from shutting down the portal made no sense to me. Many of the questions she asked were weird and made no sense to me. I began to wonder if what she was really panicking about was Trump putting a stop to income taxes and wondering how CA would continue to collect income taxes if she did so.
I could be wrong about what she was thinking as she said these weird things. But I am sure that I saw real "deep state panic." And her wanting to disregard security protocols to push her agenda made it clear to me why the deep state will fail. They are now in a rush and getting sloppy.
This is true, but my opinion is that removing the tax on tips is just the first chip away at removing the tax on income altogether along with the IRS.
That would be WONDERFUL. The Best Is Yet To Come.
If Trump disables the income tax system as the People currently 'believe' it to be, the States of the Union will have to change their laws, because they piggyback on the declared federal gross income.
"Just the tip ..."
So the FED will be sunk by what's below the surface ?