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“No tax on tips” is an industry plant

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

#141

Post by iammrpayments »

ecb_penguin wrote: post #84
bapak wrote: post #74

Earlier quoted context omitted.

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

Yep. It's wonderful throwing a few extra bucks to some euro waiter and watching them treat you better than everyone else.

When I visited the US I’ve noticed some waiters would treat you worse or just ignore if they found out you were a tourist, so when I could I would order something small and pay right away with tip, just to get basic service. So your comment makes 0 sense.

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

#142

Post by gog »

ghiculescu wrote: post #136
thuridas wrote: post #96

Aren't we creating incentives for workers abuse: - No tax on overtime: so now making them work 60 hours a week is cheaper for the employer - No tax on tips: so the tip based payment model is cheaper

How is it cheaper for the employer?

For the same amount of money employee gets it requires employer to pay out less.

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

#143

Post by ghiculescu »

gog wrote: post #142
ghiculescu wrote: post #136

Earlier quoted context omitted.

How is it cheaper for the employer?

For the same amount of money employee gets it requires employer to pay out less.

That’s not how income tax works, particularly for minimum wage workers.

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

#144

Post by IshKebab »

ghiculescu wrote: post #136
thuridas wrote: post #96

Aren't we creating incentives for workers abuse: - No tax on overtime: so now making them work 60 hours a week is cheaper for the employer - No tax on tips: so the tip based payment model is cheaper

How is it cheaper for the employer?

They can pay lower wages because the employee is losing less of their income to tax. Supply and demand.

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

#145

Post by johnisgood »

oellegaard wrote: post #71

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.

Tipping is a thing in Eastern (to be more accurate: Central) Europe too, but where I live, tipping is not taxed. Actually, let me be more accurate: people who pay with credit card always tip in cash, as there is no way to tip with a credit card[1]. :P If you buy anything with a credit card, the total amount must always be identical to the sum of the prices of the products, it can never be more, so cannot include tips[1], which forces people who tip to tip with cash.

Food deliveries (similar to Uber Eats in the US I suppose) have the option to tip, and 100% goes to the courier. 200 HUF (0.57 USD) is the most common amount (as per their website[2]). We do not use percentages.

[1] It varies and might not be universal.

[2] https://foodora.hu

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

#146

Post by RobinL »

ghiculescu wrote: post #143
gog wrote: post #142

Earlier quoted context omitted.

For the same amount of money employee gets it requires employer to pay out less.

That’s not how income tax works, particularly for minimum wage workers.

It's just supply and demand. It makes working in these industries relatively more attractive, increasing supply of labour and therefore reducing price of labour. So restaurant owners capture some of the benefits

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

#147

Post by closewith »

CalRobert wrote: post #132
closewith wrote: post #123

Earlier quoted context omitted.

[flagged]

I spent half my adult life in Ireland, had kids there, built a house there, etc and like to think that during said time I learned a few things and noticed changes. I do think part of it related to POS systems normalizing it. But it is certainly possible that our experiences differed. It was more common in Dublin 2 than in Offaly I'd say... Honestly something that was a bit galling was that the Irish would moan about…

> Honestly something that was a bit galling was that the Irish would moan about Ireland morning day and night but the instant a foreigner made _any_ observation that wasn't rainbows and sunshine we were out of our lane and needed to shut up.

Not to be rude, but have you considered this may have been an issue with you and your attitude, rather than everyone you met, if even people who you seemed to think liked you couldn't stand you.

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

#148

Post by exe34 »

preommr wrote: post #120
ecb_penguin wrote: post #84

Earlier quoted context omitted.

Yep. It's wonderful throwing a few extra bucks to some euro waiter and watching them treat you better than everyone else.

> "treat you better than everyone else." People say this, but what is better service? It's not like you get better or more food, or get the food faster since all that depends on the kitchen that isn't getting tipped directly. It's pretty much them coming to your table to take your order. I'd much rather have a free burger or drink (the equivalent of what I could get instead of tipping) with the slow service than get…

It means the pretty girl flirts with him. Otherwise why would she?

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

#149

Post by johnisgood »

crazygringo wrote: post #15
bigyabai wrote: post #2

It's also a joke, because anyone who's worked a service job knows there is no tax on cash tips (wink!)

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.

Exactly. My girlfriend who works in sales (sells food) in LA barely gets tips in cash. Most people use their cards. And thus, her tips are tax deductible.

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

#150

Post by ghiculescu »

RobinL wrote: post #146
ghiculescu wrote: post #143

Earlier quoted context omitted.

That’s not how income tax works, particularly for minimum wage workers.

It's just supply and demand. It makes working in these industries relatively more attractive, increasing supply of labour and therefore reducing price of labour. So restaurant owners capture some of the benefits

So employees earn more, and restaurants spend less. And this is bad because?
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