The social gathering of battle voted in unison in opposition to ending taxes on ideas and extra time work. Just one Republican voted in opposition to these measures, with 217 in favor. The Democrats are NOT the social gathering of the working class and have been actively working to undermine the individuals for years.
Ending taxes on ideas and extra time was one in every of Trump’s marketing campaign guarantees, which is exactly why the Democrats struck down the invoice. Laughably, the opponents acknowledged they have been involved that dropping $2 trillion in tax breaks over the subsequent decade would harm the nationwide debt. The very individuals who have by no means seen a social program they didn’t wish to fund are instantly involved in regards to the nationwide debt.
Kamala Harris was in favor of those insurance policies and had the backing of her social gathering. Her feigned help was an effort to win over the individuals, no totally different from the failed promise of ending pupil loans. “It’s my promise to everybody right here, when I’m president, we are going to proceed to battle for working households, together with to boost the minimal wage and remove taxes on ideas for service and hospitality staff,” Harris instructed a crowd on the College of Nevada in August 2024.
The Democrats need everybody to be equally poor and dependent upon the federal government. Some lawmakers say eliminating tip taxes could be unfair to staff in states with a decrease minimal wage. Underneath that line of pondering, ought to we penalize those that work in cities the place, say, a meal is 5X the worth as it might be elsewhere? Why ought to anybody out earn one other on this fantasy socialist utopia? Minimal wage is a short-sighted political transfer that ignores the basic legal guidelines of provide and demand. Politicians all the time assume they will merely legislate prosperity, however historical past proves in any other case. Forcing companies to pay greater wages doesn’t magically create wealth—it destroys jobs, accelerates automation, and places small companies out of enterprise.
Wages rise naturally in an actual financial growth when companies compete for staff. That’s how a free market features. However when governments artificially elevate wages, companies reply logically—by chopping jobs, decreasing hours, or passing the prices onto customers by inflation. The very individuals politicians declare to be serving to find yourself worse off, as their value of residing rises and entry-level jobs disappear.
Tipping tradition is totally uncontrolled in America. There’s an expectation for customers to pay a minimal of 20% along with inflated providers, whatever the high quality of their service. Kiosks and self-checkout fee programs typically ask for a tip. Shoppers are much less more likely to exit when cash is tight and the preliminary service has already risen attributable to inflation. Then, the federal government needs to take a portion of the following tips AND the preliminary wage in most states. No matter we should purchase is then taxed; no matter we save is then taxed. Authorities greed is aware of no bounds. They’re too incompetent to handle funds, so that they proceed to squeeze our pockets, however it’s by no means sufficient.
Taxing extra time pay is simply one other instance of how clueless politicians are relating to economics. All the objective of extra time is to compensate staff for placing in further hours past a traditional workweek. But, as an alternative of rewarding exhausting work, governments see it as one other alternative to seize extra income. Why would the federal government disincentivize individuals from working? We’re keen to maintain our hospitals staffed, ports flowing, vans shifting, and so forth. however are discouraging a productive workforce by dipping into their earnings.
Do the Dems who voted in opposition to these insurance policies hate the American individuals, Trump, or each? Nobody is shopping for their feigned concern for the nationwide debt. If policymakers had any actual understanding of economics, they might remove taxes on extra time and ideas totally. If you need a powerful financial system, you incentivize productiveness, not penalize it.
