Ron Paul's Tax Free Tips Act

Whether you own a restaurant, casino, bar, club, taxi company, hair/nail salon, spa or you are among the 14 Million employees who earn tips, this legislation will benefit you!

On September 25, 2007, Congressman Ron Paul introduced H. R. 3664, the "Tax Free Tips Act of 2007". 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 satisfied 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!

The Tax Free Tips Act gives hard-working Americans an immediate pay raise. It also reduces payroll taxes and paperwork for all businesses employing service-sector employees.

Please contact your congressman at www.house. gov/writerep or call the US Capitol switchboard toll free at 1-800-614-2803 Tell him/her to cosponsor and support HR 3664.