Even as President Obama and progressive activists are trying to sell the nation on hiking the national minimum wage to help restaurant workers and other low-wage employees, the Internal Revenue Service is seemingly determined to make life harder for those same workers.
A change in tax policy implemented Jan. 1 will prevent restaurant workers from collecting automatic gratuities — the added 18 percent fee many restaurants charge to groups of eight or more — as part of their tips. Instead, that added fee will be included in their payroll, meaning workers have to wait up to two weeks to get that extra cash and must pay additional taxes on it.
As Congress debates extending long-term unemployment benefits for some 1.3 million Americans, lost in the heated rhetoric are some very important numbers for taxpayers.
The state and federal unemployment insurance system has helped a lot of people in need, but it’s also allowed some ineligible recipients to fraudulently help themselves to the pocketbooks of businesses and taxpayers. States recorded some $7.7 billion dollars in improper unemployment insurance payments in 2013, according to the U.S. Department of Labor.
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Cartoon of the Week
I didn't say "How 'bout a Tax Tip?" I said, How 'bout a Tip TAX...!!"