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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

#171

Post by reissbaker »

itake wrote: post #68
wakawaka28 wrote: post #64

Earlier quoted context omitted.

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…

https://archive.is/20250731232051/https://www.newyorker.com/... > Some tipped workers, like bartenders, can make more in tips than a junior software engineer lol. Less taxes definitely helps their cause. neat, but you can only deduct up to $25k and the benefits phase out if you earn more than $150k (single filers).

I think most bartenders would appreciate an extra $25k.

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

#172

Post by Cthulhu_ »

ecb_penguin wrote: post #85
frollogaston wrote: post #76

Earlier quoted context omitted.

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.

Bud, literally nobody gives a shit about waiting on you. They are literally only doing it for the money. People in Australia are still doing it for the money, even if you don't realize it.

I don't fully believe this. There will be a category of staff for who the job is just a way to make money, sure, usually while they're also going to college/uni. But plenty are in the industry because it's their vocation, because they enjoy it, because they're people-persons, because they're good at it.

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

#173

Post by gambiting »

johnisgood wrote: post #145
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…

>>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.

Eh? I don't know if you consider Poland eastern europe(I don't really), but I tip with a card all the time in Poland, you just ask "hey can I leave a tip on the card" and they bump up the amount by whatever you want to tip. And no, the amount doesn't then equal what's on the receipt - I don't know how they work it out internally, but frankly that's not my problem.

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

#175

Post by maxbond »

happymellon wrote: post #125
maxbond wrote: post #93

Earlier quoted context omitted.

I'm curious whether you have ever worked in the service industry?

I have, in the UK. Probably 95% of customers didn't tip. I didn't have any problems with this. Why? I was nice to people because that was my job, but when I've travelled to the US I have definitely seen entitled customers treat staff like shit and claiming it's their right because they were tipping. Tipping as standard should go out the window, it just drives customers to be assholes.

I worked in a fast food restaurant here in the States, people tipped but usually not well. I wasn't pressed about it, I was getting a full minimum wage. Entitled customers didn't give me trouble for whatever reason, they seemed to size up my coworkers as softer targets.

> Why?

I was just curious about how OP's experience informed their perspective.

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

#176

Post by paganel »

reissbaker wrote: post #164
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.

Having just come back to the States from a trip to Europe — sheesh, I hope not. The service at restaurants everywhere in Europe was at best mediocre, and typically god-awful. Incentivizing good service is good. Yes, yes, "but the price on the menu says..." Whatever. If you're in the U.S., it's normalized that the price you actually pay is 20% higher, assuming they treat you well. Restaurants don't typically print the…

Service is quite good in Europe if you ignore the touristy areas. We’re also not into that fake-smiling thing, so maybe that can be seen by an American as “bad service”.

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

#177

Post by reissbaker »

lawlessone wrote: post #19
chriscrisby wrote: post #10

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.

it's indirect tax credits for businesses that don't want to pay workers.

No, it isn't. It doesn't affect the wage they have to pay them. It just affects whether the employees need to pay taxes on tips.

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

#178

Post by reissbaker »

paganel wrote: post #176
reissbaker wrote: post #164

Earlier quoted context omitted.

Having just come back to the States from a trip to Europe — sheesh, I hope not. The service at restaurants everywhere in Europe was at best mediocre, and typically god-awful. Incentivizing good service is good. Yes, yes, "but the price on the menu says..." Whatever. If you're in the U.S., it's normalized that the price you actually pay is 20% higher, assuming they treat you well. Restaurants don't typically print the…

Service is quite good in Europe if you ignore the touristy areas. We’re also not into that fake-smiling thing, so maybe that can be seen by an American as “bad service”.

I don't care about smiling. I care that when I want to leave, I can pay quickly. In Europe, it's incredibly slow, pretty much everywhere, including random rural towns in the middle of nowhere, including for random other patrons who are locals. The best service I ever witnessed in Europe was like, maybe mid-tier American fast casual level: aka, mediocre.

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

#179

Post by Al-Khwarizmi »

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.

In Spain we tend to have a similar attitude. Not really telling people to shut up, but if foreigners criticize our country we tend to get defensive, even if they are saying things we would agree with or say in a conversation between locals.

For me it's like common sense, just like you don't acknowledge family problems when you talk to people outside close family and friends, but it's probably just the culture I've been raised in.

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

#180

Post by jama211 »

voidUpdate wrote: post #165

What confuses me most is when you are given the option to give a tip before any service has been given. On deliveroo, for example, I have the option to tip the driver while I'm at the checkout. Why would I give a reward for good service when I have no idea if the service is even good? There's already a rider fee as part of my bill, so it doesn't make any sense to me to give them more money at that point

They’re just saying the quiet part out loud, the tip isn’t for service, it’s for their basic wage.
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