McDonald CEO: There is no tax on Tips that creates an “unequal stadium” for its restaurants

Fast food head CNBC’s said Squawk box On Tuesday, while supporting a policy of lack of tax on tips, he does not make any favorites for McDonald’s restaurant workers.

Kempczinski said: “The problem with no tax is that it has only benefited from restaurants that have advice,” said Kempczinski. “We do not do the shift in McDonald’s, so we do not benefit mainly to reduce taxes there.”

Trump did not include any tax on advice as part of A beautiful beautiful bill The law was signed in July. Legislation allows to deduct up to $ 25,000 of federal income tax from the amount of reported. Fast food and anti -workers – as well as waiters, chefs, chefs, dishwashers and other food workers – qualified to deduct taxes, according to a white house Social media yet Tuesday.

While some have not seen any tax on advice as a way to save workers Up to thousands of dollars In federal income taxes annually, others raised concerns about Who is already able to benefit From politics. Yale’s budget laboratory found 37 % of workers who earn advice If the income is low enough to exempt them from paying the federal income tax in 2022, which means that tax deduction will not be relevant.

“Equal Stadium” for restaurants

According to Kempczinski, policy has other negative consequences for restaurant workers. For restaurants that allow workers to earn tips, The minimum wage requirements are $ 2.13It is a specific level in 1991. Meanwhile, the minimum federal wages of $ 7.25 were set in 2009.

By providing a reward for some distinguished workers, no tax on advice provides a great advantage for companies that pay less workers with the expectation that employees collect the majority of their wages in the tips, Carla Dennis, tax strategy expert, previously Wealth.

Dennis said: “It is a victory for the employer.” “They may have more of their employees who want to work in jobs that gain advice, and may also help get more people in these jobs directed towards service.”

Kempczinski said policy gives an additional advantage to inclined wage policies, which McDonald’s did not have.

He said: “At the present time, there is an uneven stadium.” “If you are a restaurant that provides tips or has advice as part of your equivalent, you basically make the customer pay your business, and you get an additional benefit from the lack of taxes on the tips.”

Possible solutions in determining the minimum wage

In order to mitigate this contrast, KEMPCzinski suggested setting the minimum wage for both employees who do not tend to unnoticed. He also said that the company “is open to talks about raising the minimum federal wages.” McDonald’s I raised the minimum wage In 2021, about 10 % as a result of the lack of employment in the era of the epidemic, where beginners’ workers earn between $ 11 to $ 17 per hour, and managers get between $ 15 and 20.

Eight states Currently they have equal wages for distinguished and non -portable workers. In countries with $ 2.13 wages per hour, the poverty rate for Waitstaff and Prenders hovering about 18.5 %, According to the Institute of Economic PolicyCenter Research Tank, citing American census data. For one wage countries, the poverty rate is about 11.1 %. For non -portable workers, poverty levels are similar, regardless of whether the country has the minimum wage. 2014 a report From the Faculty of Industrial and Workers Relations at Cornell University, which found it had a minimum wage for distinguished and unbridled workers, and reduced the rates of rotation and increased morale of employees.

“There was already a model that shows that deadly wages could be the same as the minimum federal wages,” said Kembinski. “We just need to do this, I think, in all fifty states.”

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