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Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

theguardian.com

41–50 of 228 posts

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#42
post #3

It needs to be clear if I'm shafting a sub-minimum wage worker, or declining an egregious tip-ask at the self-check counter.

If you must tip, only ever use cash. Otherwise you're also subsidizing Square, Toast, Visa, Stripe, etc. Did they give you exceptional service today? Use cash.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#43
I would assume that the implementation mechanism involves reporting tips to the IRS so they can be taxed at a 0% rate, and that you would have to be classified as a non-exempt employee with a maximum hourly earnings rate.

So basically, unreported income remains tax evasion. White collar workers paid via tips is tax evasion. Etc

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#44
post #12

I don't like tipping culture, but it does allow for wealthy people to subsidize service and incentivizes good service. People that are more price sensitive tip lower and every once in a while a waiter will experience an extremely generous tip. I'm not convinced that forbidding tips would increase net wages paid to servers. In terms of who is paying, restaurants will simply raise prices to account for higher wages. Th…

I think it should be less about forbidding tips, and more about disincentivizing them, currently, if you make less than tips, some people feel like they personally have to tip because otherwise they're taking away (expected) wages

Give waiters minimum wage, split the cost among all sales, and if a server actually goes above and beyond, then I don't think anyone would complain about tipping them extra

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#45

I assume business would just lower the amount they pay, since tips would be worth more.

I served for years, almost no one was claiming the exact amount of your cash tips. Credit card tips would automatically be tallied but cash tips are effectively under the table.

What percentage of people are tipping in cash?

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#46
post #3

It needs to be clear if I'm shafting a sub-minimum wage worker, or declining an egregious tip-ask at the self-check counter.

Don't tip standing up. If you're ordering at a counter, that's not a tipped job. What are you even tipping for anyway? You haven't gotten your food yet, they're not bringing anything to you, it makes no sense.

If the conceit of tips is that they incentivize good service, then tipping before you receive the service is nonsensical.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#47
We're moving to a world that most restaurants won't have servers taking your food and drinks order. This is already happening in Seattle, multiple spots are now counter style ordering, you order, get a number and someone just comes from the kitchen to deliver the food. Some of them also have a QR code associated with your number which you can scan to order follow up items. Tipping more than 10% for counter style ordering doesn't make sense to me, because I don't even know who is receiving the tip?

The American Economoy just cannot support servers given the rise in cost for doing business and changes in consumer behavior due to inflation. Servers will be soon available only in the "nice" restaurants.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#48

I would assume that the implementation mechanism involves reporting tips to the IRS so they can be taxed at a 0% rate, and that you would have to be classified as a non-exempt employee with a maximum hourly earnings rate. So basically, unreported income remains tax evasion. White collar workers paid via tips is tax evasion. Etc

Sounds like all the blue collar workers who get tips are now screwed by this system. Getting tipped against a maximum wage defeats the purpose of tipping them.

Say you tip your mailman $100 at Christmas or refrigerator deliverer type stuff.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#49

tips should be banned not only is it a shitty source of income, it also exposes you to sexism, racism and makes you tolerate shit things, because your income could be at risk standing up for yourself.

In some cultures, people "tip" teachers, police officers, doctors, politicians, judges... you know where I'm going with that... I'm not saying tips should be banned but there certainly is a "cultural aspect" to tipping...

No, they don't. You're trying a false equivalency between a bribe and gratuity. A bribe happens before the service is provided and the service is contingent upon the bribe. Gratuity is post factum, technically based on the quality of the service provided.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#50
post #10

Increasing the tipped minimum wage means that restaurants will add that cost to the menu. Because tips are based a percentage of your order, this means that customers actually pay more money in tips, even though these laws are marketed as reducing the need for tips.

There should be some sort of cap on tips. My friends and I went our for dinner last weekend and we ended up spending around $600 for dinner, there were 5 of us. They automatically added 20% , $120 as a tip. We spent about 2 hours at that restaurant. I wouldn't say service was spectacular. The server infact made us over order, everyone had to take boxes back, they messed up 2 of our courses, but we had no recourse.

Definitely not visiting that spot ever again.

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