Ron Paul on the Issues: 

Taxes on Tips, Privacy, and Home-Schooling

Ron Paul
Issue CXXXIV - December 16, 2007
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No Taxes on Tips

It is an outrage that waiters, waitresses, and other service-sector employees have to pay taxes on the tips they earn. The IRS makes an estimate of how much service-sector workers will make in tips, and taxes them on it even if the taxpayer did not actually earn as much as the IRS' estimate!

Tips provide a substantial portion of the income of many service-sector employees, many of whom are young people just trying to make a few extra dollars to get through school, or single parents often balancing two jobs while trying to make enough to raise a family. This tax amounts to nothing more than the federal government punishing these employees for working hard and doing their jobs well.

I have introduced H.R. 3664 in Congress to end this problem. The Tax Free Tips Act of 2007 will exempt tips from federal income and payroll taxes. Ending taxes on tips will give workers an immediate pay raise, letting them keep more money to put toward things like a house or car payment, their retirement, or their own and/or their children's education.

When you give someone a tip, you should not have to simultaneously tip the federal government.

Privacy and Personal Liberty

The biggest threat to your privacy is the government. We must drastically limit the ability of government to collect and store data regarding citizens’ personal matters.

We must stop the move toward a national ID card system. All states are preparing to issue new driver’s licenses embedded with “standard identifier” data — a national ID. A national ID with new tracking technologies means we’re heading into an Orwellian world of no privacy. I voted against the Real ID Act in March of 2005.

To date, the privacy focus has been on identity theft. It was Congress that created this danger by mandating use of the standard identifier (currently your SSN) in the private sector. For example, banks use SSNs as customer account identifiers because the government requires it.

We must also protect medical privacy. Right now, you’re vulnerable. Under so-called “medical privacy protection” rules, insurance companies and other entities have access to your personal medical information.

Financial privacy? Right now depositing $10,000 or more in cash in your local bank account will generate a federally-mandated report to the Financial Crimes Enforcement Network at the United States Department of the Treasury.

And then there’s the so-called Patriot Act. As originally proposed, it:

I have fought this fight for many years. I sponsored a bill to overturn the Patriot Act and have won some victories, but today the threat to your liberty and privacy is very real. We need leadership at the top that will prevent Washington from centralizing power and private data about our lives. 

Home Schooling

My commitment to ensuring home schooling remains a practical alternative for American families is unmatched by any Presidential candidate.

Returning control of education to parents is the centerpiece of my education agenda. As President I will advance tax credits through the Family Education Freedom Act, which reduces taxes to make it easier for parents to home school by allowing them to devote more of their own funds to their children's education.

I am committed to guaranteeing parity for home school diplomas and advancing equal scholarship consideration for students entering college from a home school environment.

We must have permanency in the Department of Defense Home School Tier 1 Pilot Program, providing recruitment status parity for home school graduates. I will use my authority to prevent the Department of Education from regulating home school activities.

I will veto any legislation that creates national standards or national testing for home school parents or students. I also believe that, as long as No Child Left Behind remains law, it must include the protections for home schoolers included in sec. 9506 (enshrining home schoolers’ rights) and 9527 (guaranteeing no national curriculum).

Federal monies must never be used to undermine the rights of homeschooling parents. I will use the bully pulpit of the Presidency to encourage a culture of educational freedom throughout the nation.

Congressman Ron Paul of Texas enjoys a national reputation as the premier advocate for liberty in politics today. Dr. Paul is the leading spokesman in Washington for limited constitutional government, low taxes, free markets, and a return to sound monetary policies based on commodity-backed currency. He is known among both his colleagues in Congress and his constituents for his consistent voting record in the House of Representatives: Dr. Paul never votes for legislation unless the proposed measure is expressly authorized by the Constitution.

To learn more about Congressman Ron Paul, visit his Congressional Home Page.

See Ron Paul's official website regarding his run for President in 2008.

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