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“No tax on tips” is an industry plant

newyorker.com

291–300 of 618 posts

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

#291
post #235

Earlier quoted context omitted.

NYC here, whole lot of cash still showing up in tip jars - there are still and loads of cash-only places around, from bars, restaurants, to street carts, you name it. JG Melon, for instance, is famously cash only. But so too is the bar around the corner from my apartment (Dynaco, do recommend). ...So people often tend to be carrying cash still.

Sure, but more places take card, and fewer people carry as much cash. Or rather, people carry less cash. The fact that a business "famously" is cash only seems to support this, as that implies that it's becoming more unusual.

It’s certainly unusual for a famous restaurant to not accept cards.

Everything else is a crapshoot. If you don’t have cash you aren’t getting dumplings in Chinatown. And that’s just a bummer!

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

#292

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.

I agree with your post. But.. I'm from the UK and travel in the US a lot and US service is much better. I've never had to chase up the check or had to go and search for staff to serve me after sitting there for ten minutes. These are common occurrences in the UK for me. Ideally, tipping wouldn't exist and everything would be priced in, but pragmatically, incentives grant extra benefits to both parties. Potential for…

But people do tip at restaurants in the UK. So what are you saying is the difference?

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

#293
post #276

Earlier quoted context omitted.

> Are there still customers giving tips as "a reward for good service"? Sad if this is no longer the case. In the UK at least (and the rest of Europe too, as far as I can tell), this is still very much the case. The curve varies with the individuals tipping. I would be quite happy to give 20% if the service was outstanding. I’m equally happy to not tip at all if the service was very poor.

France here - no tip is the norm, tip is for service above & beyond... But, contrary to the USA, everyone gets a proper living wage !

The only issue with restaurants in France is that they close up early, or only open within strict lunch hours.

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

#295
post #56

Earlier quoted context omitted.

This is unlikely to be allowed, the last I checked, the law explicitly only allows "traditionally tipped jobs". How it gets interpreted and implemented in IRS Tax Code isn't clear yet, but they will probably have rules in place to prevent this. Doesn't change the fact that it is a terrible idea.

Hmm, this makes me wonder though -- I have noticed various projects on Github and various other sites allow for users and fans of projects to donate to the developers and maintainers. Who hasn't seen the "wanna buy me a coffee?" button on a site before? I am not sure if the money from such sources was ever taxed as income, but if so, then I wonder if such will be non-taxable now? Considering donation and tip buttons…

They will publish a list

> (h) Published List of Occupations Traditionally Receiving Tips.-- Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall publish a list of occupations which customarily and regularly received tips on or before December 31, 2024, for purposes of section 224(d)(1) of the Internal Revenue Code of 1986 (as added by subsection (a)).

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

#296

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

You’re not paying for a service, you’re bidding in an open market. They don’t tell you this but it’s the reality. Drivers can tell if you don’t tip and all of the experienced ones will decline your order. Though these apps have done a lot of work to conceal the amount the driver actually gets until delivery is completed.

this feels weird to me because i always thought i already paid for the service as part of my order. having to go into a open, blind bidding war with other customers to gett my order processed ...

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

#297

Earlier quoted context omitted.

I should have specified that I live in the east-coast United States. Tap-to-pay is almost as common as someone writing you a paper check or an IOU, out here.

Contactless is basically non existent in America? I know America has always been backwards (cheques were still in use well into the 21st century, card pins didn’t seem to catch on before contactless became a thing about a decade ago), but I thought contactless was quite high nowadays, especiallly with phones and watches. Certainly I’ve had no problem paying contactless in the cities I’ve been to recently - New York,…

Table-service restaurants always take your card (Not sure if they support chip and/or contactless), but most other services support chip and contactless. (2025, NC). This wasn't true in my experience until a few years ago. We lag Europe by 5+ years on payment techs. E.g. chip, contactless. There's a coffee shop holdout near me that was magstrip only until a few weeks ago.

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

#298

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

> when you are given the option to give a tip before any service has been given [...] why would I give a reward for good service Are there still customers giving tips as "a reward for good service"? I'm trying to imagine a curve representing the distribution of "quality of service". What shape is the curve, and where on it would a 20% tip and a 0% tip be?

Are there still customers giving tips as "a reward for good service"?

Yes.

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

#299

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

> when you are given the option to give a tip before any service has been given [...] why would I give a reward for good service Are there still customers giving tips as "a reward for good service"? I'm trying to imagine a curve representing the distribution of "quality of service". What shape is the curve, and where on it would a 20% tip and a 0% tip be?

In 30+ years I’ve given exactly two restaurant servers 0% tip - it takes a lot for me to give someone nothing, but somehow they met the challenge.

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

#300

Earlier quoted context omitted.

The IRS is going to publish a list of eligible occupations by years end.

like being president, and getting crypto tips from supportersuckers

There will be a separate bill for emoluments.
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