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“No tax on tips” is an industry plant

newyorker.com

351–360 of 618 posts

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

#351

Earlier quoted context omitted.

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.

This was true five years ago, not true now.

When I eat out in NYC now they almost always bring the machine to your table so you can use contactless and you select the tip amount on the screen.

The other week I went to a place that asked for my card and brought out the receipt for me to sign and I had to manually calculate the tip and was struck by how long it's been since I had to do that.

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

#352

Earlier quoted context omitted.

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.

If you're paying a relatively high hourly wage to all of the staff, it seems unsurprising that you'd not want to be open during times of low customer traffic.

Honestly, this seems good overall; there's no more sense in having low-paid waitstaff hanging around hoping to get a customer table that will tip than in having a restaurant owner keep the restaurant open while paying the staff a reasonable hourly wage.

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

#353

Earlier quoted context omitted.

> It is a mechanism to move labor costs to the consumer. How does this work? The corp already handles some form of payment to the worker, especially when you tip as part of a card payment. And in both cases, the consumer foots the bill. How's it different from paying the worker more and asking for more money upfront?

It moves the real cost of the additional labor from the prices displayed for items (like you would see in a B&M grocery store) to some tertiary part of the purchase process that is displayed 1) after the used has gone through the effort of app navigation and selecting their purchases and 2) has been through the majority of the purchase funnel and self-selected as a high-prospect sale. This helps keep the listed price…

That is true. What is also true is that having things delivered to you is not free, and the prices of the goods cannot be same for delivery vs warehousing in a store.

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

#354

Earlier quoted context omitted.

In a Louis Rossmann video (i think it was the one on food delivery guys on e-bikes) he mentions never tipping in app but leaving a note that says he will give a cash tip if the driver brings the food straight to his door. That seems like a decent compromise as it doesn't let the app take a cut from the tip and makes so the driver actually goes the extra mile to 'deserve' the tip.

>* but leaving a note that says he will give a cash tip if the driver brings the food straight to his door.* Why, where else would they take the food? Leave in at the patio? Drop it on the lawn?

Leaving it on the porch, on the street closest to their car, with the front lobby in an apartment building...

There's quite a lot of places people will think to leave food if they're rushing to pick up another job.

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

#355

Earlier quoted context omitted.

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?

Some people do, but it's not necessary. I rarely tip, and if I do, it won't be the 20% that is customary in the US.

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

#356
post #2

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

Haha, I had the same thought but now basically everyone is digital so I think its a different ball game than we are used to. At least as a restaurant server/bartender.

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

#357
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.

My take is that it is spreading not due to culture, but due to how all new point of sale systems / card terminals come with a "tip" feature implemented. I'm from Europe, and have traveled here extensively. Tipping is pretty rare, but for the past maybe 5 years, almost all new payment terminals have the tipping option.

This is absolutely true, but that is exactly how culture spreads now. Through products/software/media.

American business software, American movies, American YouTube channels. They will inject American problems and solutions into your country, like it or not.

Microsoft may treat your privacy slightly better because of the GDPR, but those invasive systems are still there, toggled off. Waiting for Microsofts lobbying to chip away at the privacy laws until they can turn them on.

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

#358
post #2

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

When I worked as a waiter (many years ago), my pay check included tax withholding based on 8% of my tables for that pay period. This is driven by IRS rules: https://www.irs.gov/taxtopics/tc761#:~:text=If%20the%20total...

We had to declare our tips at the end of the night, and 10% was the lowest you could claim without needing manager approval. You can guess what everyone declared.

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

#359

Earlier quoted context omitted.

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.

This was true five years ago, not true now. When I eat out in NYC now they almost always bring the machine to your table so you can use contactless and you select the tip amount on the screen. The other week I went to a place that asked for my card and brought out the receipt for me to sign and I had to manually calculate the tip and was struck by how long it's been since I had to do that.

Interesting! That was my experience in Europe even 10 years ago, but they haven't caught up in NC, Vegas, and the other US cities I've been to lately. Interesting hearing the NYC takes in this thread! Both cash, and modern chip/tap readers at restaurants, neither of which I see.

I heard this mess has to due to banks and CC companies (Visa etc) fighting over who implements the changes, while the system in Europe (and Asia, and South America...) doesn't have that division, so they get the tech mainstream fast.

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

#360

Earlier quoted context omitted.

I suggested we do this at work. We’ll add a tip field to our Jira tickets and whoever’s ticket is worth the most gets priority. Oh you submitted a production incident a week ago? Sorry, there’s not even $5 on it, we filter those out.

We may just get this, along with a $7.25 per hour base wage!

let’s not get too lofty, the federal base tipped wage is $2.13
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