Difference between revisions of "Tax Rates Reflect Well-Being"
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Revision as of 13:27, 22 October 2024
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The employer probably pays the waitress a very small wage, which is allowed under many minimum wage laws because she's got a job that typically generates practices. The IRS might therefore conisder that my tip is paid "for" the employer. But I am under no compulsion to leave the waitress anything. The employer, on the other guitar hand, is obliged to fund the services his workers render. Simply because don't think the exception under Section 102 applies. If the tip is taxable income to the waitress, it's under the typical principle of Section sixty one.
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The federal income tax statutes echos the language of the 16th amendment in stating that it reaches "all income from whatever source derived," (26 USC s. 61) including criminal enterprises; criminals who to be able to report their income accurately have been successfully prosecuted for bokep. Since the text of the amendment is clearly intended to restrict the jurisdiction of the courts, can not immediately clear why the courts emphasize the words "all income" and disregard the derivation of the entire phrase to interpret this section - except to reach a desired political remaining result.
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Let's change one more fact within example: I give a $100 tip to the waitress, and also the waitress happens to be my small. If I give her the $100 bill at home, it's clearly a nontaxable present idea. Yet if I present her with the $100 at her place of employment, the government says she owes income tax on the device. Why does the venue make a difference?
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