Taxes on tips is an Important issue in Nevada
Tuesday, January 15, 2008
Speaker: GOP Presidential candidate Ron Paul
Claim: "It is an outrage that waiters, waitresses, and other service-sector employees have to pay taxes on the tips they earn."
Context: Paul's statement is a regular part of his stump speech that he has delivered throughout the country. He said it is an unfair tax because the government is taxing people simply for doing a good job.
Accuracy: The Internal Revenue Service Tax Code does require service industry personnel to estimate and pay taxes on their tips. Paul has Introduced House Resolution 3664, the Tax Free Tips Act of 2007, which will exempt tips from federal income and payroll taxes. The issue particularly hits home with many Nevada residents who work in the service and gaming industries and rely on tips to make ends meet.