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“No tax on tips” is an industry plant

newyorker.com

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Re: “No tax on tips” is an industry plant

#72
post #60

Earlier quoted context omitted.

Beware the logical fallacy. "A implies B" does not mean that "not A implies not B". Workers who earn too little to pay taxes (A) will not benefit from a tax cut (B). But workers who earn enough (not A) may still not benefit (not B), for example because their employer indirectly pockets the difference. That is actually being argued in the article. So this is indeed the appropriate way of formulating the statement: at…

I can't read this article because of the paywall. Are they saying that taxable tips are subject to payroll taxes (which employers pay out of pocket)? That would actually benefit both employers and employees in some sense. Some tipped workers, like bartenders, can make more in tips than a junior software engineer lol. Less taxes definitely helps their cause. If you are concerned with indirect effects, there's quite a…

> I can't read this article because of the paywall

I just turned on reader mode in Firefox and then refreshed the page and got the article. I'm surprised how often it works. It often doesn't but sometimes it does.

Re: “No tax on tips” is an industry plant

#74

It’s crazy that this still happens in the US. Tipping is a thing of the past. Pay for your meal and have the restaurant pay their people for their work. End of story.

The crazier part is that it's spreading to more industries and more countries thanks to Americans thinking they should tip everyone everywhere. Thanks.

Re: “No tax on tips” is an industry plant

#75
post #60

Earlier quoted context omitted.

That’s a weird way to say a sizable majority of tipped workers do pay taxes and will benefit from this.

Beware the logical fallacy. "A implies B" does not mean that "not A implies not B". Workers who earn too little to pay taxes (A) will not benefit from a tax cut (B). But workers who earn enough (not A) may still not benefit (not B), for example because their employer indirectly pockets the difference. That is actually being argued in the article. So this is indeed the appropriate way of formulating the statement: at…

But it would be true to say not B implies not A right? (contrapositive?)

Re: “No tax on tips” is an industry plant

#76
post #73

It’s crazy that this still happens in the US. Tipping is a thing of the past. Pay for your meal and have the restaurant pay their people for their work. End of story.

There’s very little empirical evidence correlating tipping with better service.

No, they're definitely more attentive for the tip, I just don't like it. If they're going to be extra nice, I don't want it to be for money. Felt nice going to other countries like Australia where the customer isn't always right but they still do their jobs.

Re: “No tax on tips” is an industry plant

#77

Don't forget to reduce your tips by the percentage they were previously being taxed, since it is all charity anyway. Hopefully this becomes another straw that will eventually break the camels back and we get rid of tipping all together. Every restaurant in the world does not need tips to survive, except for the ones in the US.

I've already been doing that because I tip with cash. Credit card tip is self-contradictory.

Re: “No tax on tips” is an industry plant

#78

"No tax of tips" is one of the most brilliant political ploys ever. You really gotta give Trump credit. It doesn't really cost anything, businesses love it, and you can trot it out as a victory for the working class while you screw them on their health care or energy costs.

Idk, tipping expectation is really unpopular, and anyone can see how this feeds it.

Re: “No tax on tips” is an industry plant

#79
post #17

Earlier quoted context omitted.

Which made a difference 2 or 3 decades ago. But today, who's getting tips in cash? Not many. Customers are paying for everything with credit cards or contactless, save for the occasional cash-only coffee shop or restaurant.

> But today, who's getting tips in cash? Every server who waits on me. I make it a point to carry cash and tip the waitstaff in cash even if I pay the bill on my credit card. 1) Tips on credit cards are a "dark pattern" meant to increase the house rake of the credit card handling companies. 2) Tips on credit cards are controlled by the owner and often never make it to the waitstaff. I can short circuit this by giving…

Same, but gotta acknowledge that few people do this still. A lot of businesses were even cash-only before coronavirus, now I see 0, at most they do a CC surcharge.
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