Another lie from Joe Biden.
During the President's second State of the Union address, he falsely claimed middle-class Americans should not expect to pay any more in taxes.
“Under my plan, nobody earning less than $400,000 a year will pay an additional penny in taxes,” the commander-in-chief declared during his State of the Union speech. “Nobody. Not one penny.”
However, on Monday the Internal Revenue Service released a proposed revenue procedure that would entail employers in the service industry voluntarily report their workers' tips to the tax agency.
According to reports from The Daily Wire, the Service Industry Tip Compliance Agreement initiative, for which the IRS is soliciting feedback through early May, would be “designed to take advantage of advancements in point-of-sale, time and attendance systems, and electronic payment settlement methods to improve tip reporting compliance,” according to a notice from the agency.
The program would exist to decrease “administrative burdens” on taxpayers and IRS administrators.
Businesses involved with the initiative would submit an annual report on tips to the IRS after each calendar year; participants would thereby “receive protection from liability under the rules that define tips as part of an employee's pay for calendar years in which they remain compliant with program requirements.” Individuals who work in restaurants, hotels, salons, and other service-oriented businesses are already required to keep a daily record of their tips and pay taxes on the earnings to the IRS.
The proposed new rule comes after the IRS received an additional $80 billion through Biden's Inflation Reduction Act, which allowed the agency to double its workforce.
Treasury Secretary Janet Yellen has also claimed that the funds from the Inflation Reduction Act would not be used to increase audit rates for American households earning less than $400,000 per year “relative to historical levels.” She failed to clarify that “historical levels” of enforcement were far higher as recently as one decade ago: audit rates for Americans earning between $25,000 and $200,000 declined 76% between 2010 and 2019, according to data from the Government Accountability Office.
Last week, the IRS told millions of taxpayers to hold off on filing their returns until the dust settles on issues of whether several state refund and rebate payments issued last year count as taxable income.
According to a report from The Wall Street Journal, the IRS said in a Friday statement it will provide guidance this week on the tax status of California's and other states' payments. Meanwhile, it is advising those who received these payments to await further instructions.
“For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS,” the IRS said.
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Sounds like the IRS will expect the business to track the employee’s tips. With the rapid turnover of waiters, a medium size restaurant could have several hundred reports to file at the end of the year. Most restaurant managers aren’t the most computer savvy and they probably can’t afford to purchase software programs, so the reports would probably have to be done manually. Just one more reason why Biden hates middle class business owners.
Another of the many problems with an income tax. The answer is the simple Fair Tax, a sales tax proposed to replace income taxes. It would ensure that everyone pays his fair share, including the rich who currently have the advantage of tax shelters that the middle class doesn’t. Imagine never again having to face the problems and nuisance of filing annual income tax returns.
Biden and the Democrats are “tax hogs” and middle-class citizens are the victims. Why? Because that’s where the most money is.