We're already getting taxed on tips, what more could the IRS take?: Waitresses weigh in on Biden's tip tax

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Waitresses now need to tip the government: Watters

Waitresses Nicole Beatty and Samantha Fezetta discusses how President Biden's reported hiring of 87,000 IRS agents to collect the government's share of tips will affect waitresses on ‘Jesse Watters Primetime.’

Some workers who receive tips as a major source of income say they are under financial attack due to the IRS' initiative for a voluntary tip reporting system known as the Service Industry Tip Compliance Agreement.

This move comes along with President Biden's expansion of the IRS, reportedly adding 87,000 workers to the institution.  

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"Under my plans as long as I'm president, nobody earning less than $400,000 will pay an additional penny in taxes," Biden said during his State of the Union.

Reportedly, the lowest income bracket was five times more likely to face an IRS audit than members representing the highest income bracket.

Waitresses Nicole Beatty and Samantha Fezette joined "Jesse Watters Primetime" to explain how Biden's IRS initiative is going to affect the service industry.

Beatty explained how on a "good day" she would take home somewhere between $200 to $250 in tips, and how the IRS will be taking a cut of that.

"I'm not feeling too good about it. You know, everything that I sell, whether it's food or liquor or whatever is already going into the computer, and, you know, we have to tip out the bartenders, bussers, and I feel like we are already being taxed," Beatty said.

Fezette explained how wait staff already have to report the credit card and cash tips they receive, and is unclear on "what other taxes we could get."

"I mean, we already are one of the lowest wages paid, and we depend on how people feel to make a living, so I don't think it's fair. I think there's a solution, but I don't think it's here," Fezette said.

Beatty emphasized the effect this would have on a myriad of people in the service industry. 

"This is going to affect so many people, so many single parents, so many people that depend on this just for daily living," she added.

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"I also think we just need to reevaluate a solution because like I said, we're already getting taxed," Fezette said. "We're already doing our part, so I don't know what the solution is, but I don't believe it's just taxing the service industry."