Tax Free Tips Act Introduced by Ron Paul

Ron Paul Speech to Congress

September 25, 2007

Madam Speaker, I rise to help millions of working Americans by introducing the Tax Free Tips Act. As the title suggests, this legislation makes tips exempt from federal income and payroll taxes. Tips often compose a substantial portion of the earnings of waiters, waitresses, and other service-sector employees. However, unlike regular wages, a service-sector employee usually has no guarantee of, or legal right to, a tip. Instead, the amount of a tip usually depends on how well an employee satisfies a client. Since the amount of taxes one pays increases along with the size of tip, taxing tips punishes workers for doing a superior job!

Many service-sector employers are young people trying to make money to pay for their education, or single parents struggling to provide for their children. Oftentimes, these workers work two jobs in hopes of making a better life for themselves and their families. The Tax Free Tips Act gives these hard-working Americans an immediate pay raise. People may use this pay raise to devote more resources to their children's, or their own, education, or to save for a home, retirement, or to start their own businesses.

Helping Americans improve themselves by reducing their taxes will make our country stronger. I, therefore, hope all my colleagues will join me in cosponsoring the Tax Free Tips Act.

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Don't forget to show this to management/owners.

This is also a benefit for the employers of the service sector jobs as well...

Just tell them about the time and money that they would save having to comply with reporting tips. They can save on payroll taxes, as well as compliance costs with having to keep track of the tips, as well as just letting the server do their job and not having to keep an eye on the servers to make sure that they are reporting their tips...

Don't forget about the busboys that actually make minimum wage, plus a small percentage of the money of their servers.... And the related compliance cost of that...

Don't forget the bartenders.... Cabbies AND their companies, Hotel workers and hotels... are you starting to see how big this could be?



Pizza delivery people, barbers, hairdressers, doormen, parking attendants.

since tips are gifts....

What about those gifts that are given by companies, i.e. bonuses, be considered gifts, and therefore could be thought of as a tip? There are a lot of ways that this can be played, just like the politicians play other bills...

Can we say tax revolt? 8-)

Just a thought....

The focus should be on the legislation

We should make sure we are telling servers how this benefits them and then mention he is running for president. They will draw the necessary conclusions.

Another way to get to service industy re: TaxFreeTips

There are so many people using Craigslist to look for service industry jobs, I think it would be a great place to spread the word.
Go to to see what I mean. Obviously, you want to choose your locale and, if we spread this, staff across the US will see it.
Now, it does cost $25 to post a job listing, but if we can raise 500,000-1 Million for Ron Paul, I think we can do $25 and it's a good way to spend your cash. Especially for those who have maxed out their donations.
So, pick your area, go to "food/beverage/hospitality jobs" and post a job listing under a title like "Stop paying taxes on your tips!" and in the body of the job listing, copy/paste the text from Hillbillybruce's flyer.
What do you think?

PS: you can also post in the "Politics" section for free.
for example:

Look At All The Happy Creatures

Carry around small copies of this, and leave it with your tips!

Wow, this would be a great way for getting service-sector employees (i.e. waitresses, etc...) to vote for Ron Paul!

Just use your computer to make make small printouts of the above speech (you could easily fit several copies on one piece of paper). Be sure and add "Ron Paul for president 2008" at the bottom.

Next: Just remember to place a copy of it with every (good) tip you leave from now until election day!

This WILL win Ron Paul some votes for sure!

Awesome Idea, hillbillybruce!!

I've been wrapping tips around those RP cards, but this is even better -- and add the URL -- most of them will have computers, and that's how we should get them to meet Dr. Paul.

I think the wait-staff vote is critical for us, and the truth is I'm old-enough that I recall when the IRS started bothering waitresses in the early '80s. Bad idea then, and it's still a bad idea now. Anyway, THANKS for a great idea.

Here's a small and simple PDF copy

I agree that some nice Ron Paul business cards would be better.

However, until someone does that, here's a small and simple PDF copy I just made that is easy to print for anyone with even an old B&W computer printer:

There's four per page, just cut along the dotted lines, and that makes them just slightly larger than $Fed notes... Easy to keep with your wallet or purse!

This is GREAT! A couple of

This is GREAT! A couple of constructive ideas: Mention at the end. And in tiny print: Paid for by John Q. Public, not Affiliated or approved by any Candidate or Candidates Campaign.


This is a good idea BUT they should be told that they have to call their reps in Wash. to get this passed. Knowledge is great but nothing will happen if they don't put pressure on Wash.
So, how about a small adjustment in the text?

Tex Free Tip cards

What a fantastic idea! Hats off Hillbillybruce!
Let's get these into the hands of every service industy worker we cross paths with.

Look At All The Happy Creatures

We need specific Ron Paul Cards for this!

I would love it if someone with more time and better printing equipment than me could make a bunch of professionally printed, color wallet-size Ron Paul Cards designed just for this purpose. Perhaps they could have an excerpt from this speech on one side and some general information on the other.

I would happily buy a bunch and leave them with every tip, and they might get a better reception that whatever amateurish thing I could crank out. I have no laminating equipment, so anything I'd produce would be a sodden mess after the first drink was spilled on it,.

Lobbyists got to Ron PAul

Clearly this Bill is a quid-pro-quo agreement in exchange for support from the "Strippers for Ron Paul" lobby.

(Just kidding. It's common sense legislation. Go Ron)