Should Tips be Taxed?

Episode Transcript

(00:00):
Yes, competitive eating contests should beconsidered a sport. Those guys train their
bodies all year round just to beable to compete in those events. They
just don't show up on that dayto start stuff and hot dogs down their
face. It's a trained ability,athletic ability, just like any other pro

(00:21):
sport athlete does all year round.Okay, thank you, Keith. That's
Keith's standard. We kind of askedthe question this morning, what makes an
activity or a competition a sport Atthe start with the Joey Chestnut thing and
I'm Nathan's hot dog eating contest.They got a big controversy because Nathan said,

(00:46):
no, you can't. You can't. You can't sign up with that
other food company and still compete.So if you want to weigh in on
that, feel free. Welcome AaronReale, NBC Radio of the program aeron
welcome back. It's good be herethat I love the earnestness with which yes,
he's real sport trade all yeah,somebody, Yeah, he's right.

(01:10):
If that's the standard, If itdoes it take, if it takes training
to prepare for a competition, doesthat make it a sport? So,
I mean it's a valid question.And I'm not laughing at him. I'm
just like, there's so much ofme that feels like but it's eating what?
And it's gross eating? Have youever watched that thing? I can't
watch that thing? Oh? Imean yes, I love that you say

(01:33):
that. It actually genuinely it makesme feel sick to my stomach. Yeah,
and I love the lady the blackwidow. Wasn't there like a lady
who was really good at it?Asian woman? Well? Man, I
think it's gross and I'm like,I don't know why we're doing this.
This seems like a strange exercise.And they don't get tips for that either.
What a well, what a segue? Iron? Is there to talk

(01:57):
about? What? The former presidentTrump the other day was out in Vegas
and you said, if I'm reelected, we won't collect taxes on the
people who are in tips for aliving. And I'm wondering why should they
be exempt? Aaron, what doyou think about this? It is a
great one. So what do Ithink about it? I think that it's
a heavy lift. I think thattaxing tips. Is it great to keep

(02:22):
one hundred percent of your tip?Yeah? Do some people do it anyway?
Not pay taxes for sure, butat the same time, some people
do pay taxes on it because itbrings in about forty billion a year to
the IRS as a big hole tofill if we don't tax tips. Beyond
that, Trump this is kind ofTrump's answer to the cancel student loan debt.
It's a something block campaign promise that'svery hard to uphold because Trump will

(02:46):
need congressional approval to do this.To eliminate taxes on tips that are been
earned, and eliminating taxes on tipsis not currently under consideration by House Republicans.
They are crafting legislation to extend Trump'stwenty seventeen tax cut package, so
this is not a part of thediscussion. It's a good one in a
place like Nevada, where you havea heavily tipped hospitality industry. Actually one

(03:09):
in four private sector workers work inhospitality, and Nevada is a key battleground
state. It usually goes blue.There are heavy unions there that tend to
go Democratic. But it shows froma lot of the polls that Trump is
edging out buying in and listen.For the union's part, they actually came

(03:30):
out one of the largest union inNevada. It called Trump's tax tip plan.
This is a quote, a wildcampaign promise from a convicted felon.
I think that that kind of indicateswhere they stand. Yeah, but my
big question is what is different abouttip income? It's income. I mean,
how about how about broadcasters? Ifyou make your money as a broadcaster,

(03:54):
we won't tax you. How aboutthat that ain't happening, right,
No. I think you make areally good point that it's that simple in
a lot of ways. And thenthe whole argument is like, well,
why don't you get to keep onehundred percent of your tips? And then
they won't you the employer won't haveto pay the employee as much. And
you're like, oh, that's aslippery slip because often and now that there's

(04:15):
tips fatigue, what if you don'tmake any money or what if you you
know, like, it's just it'sa hard one to square. But I
think your position is just simple,And I often find the strongest positions are
grounded in simplicity, where you're like, what, no, we live in
a place where you get taxed,Like, what do you mean you're not
taxing that? Yeah? Well,I mean I understand why you did it.

(04:38):
As you're saying about is a bigswing state, and that's maybe I
don't know if it's the biggest industryout there, but it's one of them,
the service employees. So you know, politically, I'm sure it was
pretty smart to say that. Yeah, politically it's smart, but it doesn't
I think that. Listen as thehead of the union. This is Ted
Papa Papa Joy. She's the NevadaCulinary Worker Union secretary Treasury. He said

(05:03):
Nevada workers are smart enough to knowthe difference between real solutions and a wild
campaign promise. I think there issome truth to that, you know,
like he's not incorrect, and thenyou know, and he is a convicted
fella. Now this is Trump's firstrally since this historic conviction in New York's
a hush money trial. But it'svery clear according to all the polls that

(05:26):
that conviction has little to no impacton his voters. They said, they
said it would, but now they'sbeen convicted, they're like, yes,
it's fine. I don't think so. Although that guy is also a big
Democrat voter. So I'm sure ifBiden had said that, he wouldn't have
come out with that statement. Ofcourse, of course, politics, politics,
politics, politics, Aaron. Thanksalways great to have you on Aaron

(05:46):
Rayale NBC Radio. Here