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“No tax on tips” is an industry plant

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421–430 of 618 posts

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

#421

Earlier quoted context omitted.

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.

It may not affect the wages they have to pay but may affect wages they pay if they pay above the minimum.

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

#422

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.

Also a tip goes to the pretty face who bring you plates. However, the whole restaurant experience is made by many people: dishwasher boy, prep boy, shef, cleaning lady, etc. They should tip to cleaning lady as dirty toilet can ruin whole "experience".

In many restaurants the tip is split between all of those people. You just don't know it because they don't exactly post their tip policy.

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

#423

Earlier quoted context omitted.

It is a mechanism to move labor costs to the consumer. On some delivery apps , the driver can decide which jobs to take based on the pre-service tip. So the companies have effectively put the responsibility to pay driver's base wage on the users themselves, while the company still takes a huge corporate cut

On delivery apps it should be called a "bid" and I think honestly it would be more ethical than the shady nonsense they do now if they went all in on that.

i like the idea of bids, but only if its coupled with the ability of workers to just outright reject the offer.

the problem is that there's still a guarantee of service for the user regardless of what you bid. if i want my burritos delivered at 2AM and am only willing to bid $1 on delivery labor, i shouldn't expect that my burritos will be delivered.

for tips, the model is "the work will be done and i'll pay extra if it's good". but with bids its "how much do i need to pay to get this work started"

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

#424
post #371

Earlier quoted context omitted.

The gready sleazeballs who like the "tipping" system (mostly, restaurant owners) would prefer to pay all their employees $0 and have all diners/customers/etc pay 100% of the wages out of guilt. While 10% was customary in the first half of the 20th century, the standard tip gradually increased to 15% by the 1980s. In 2025 it's not uncommon to see little shortcut buttons for 20, 25, 30%. You can see where this is going…

Ah yes, the greedy sleazeballs. If you knew that the total cost of the meal would be the same, say $20 for the meal, does it to you matter if: 1) you pay $20 "no tip" and the owner pays non-tip minimum wage, or b) you pay $16.50 for the food and $3.50 separately to the server in the form of a tip ?

> If you knew that the total cost of the meal would be the same,..

Huh, why should I know this at all. I read the prices online or in restaurant when I enter in. I will assume that as my cost of food.

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

#425

Earlier quoted context omitted.

Ah yes; for a bit my wife was making less as a preschool teacher than the minimum wage at McDonalds. I understand it caused a bit of turnover at the local public schools, since cafeteria workers and aides were making less than $20/hr in 2024 as well (I don't know if they still are).

Reminds me of when I was visiting family a few years ago in Kentucky. I kept seeing tons of ads everywhere about hiring for plumbers, and some warehouse roles. The listed salaries were not that far off from what even the local McDonald’s was paying

There was a (at least local) McDonald's inversion just after Covid; they were paying $20/hr which was competitive or better than the local factories.

It's one of those "reset" things you need to do now and then, because it's really easy for an industry like CNA or similar to end up paying less than the gas station for more annoying work.

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

#426

Earlier quoted context omitted.

The United States has federal payroll taxes of which half are paid by the employer.

Social Security and Medicare (FICA) is not exactly a tax, if that is what you are talking about. There is FUTA (Federal Unemployment Tax) paid by employers, but this is quite low, certainly not a significant portion of tax revenue.

The IRS calls it a tax. In what sense is it not exactly a tax? It’s a mandatory payment to the government. It functions like a tax and it’s called a tax.

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

#427

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

Income tax is paid from employee salaries/wages, not by employers.

[deleted]

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

#428

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?

Yes, in countries outside the US I don't tip unless I got especially good service. Servers get paid (at least) minimum wage here and if they want more they should take it up with their employer like the rest of us.

In the US I usually tip but have refused to do so when the service was especially bad - although even then its a hard decision because you often don't know who is actually responsible for the bad service.

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

#429

Earlier quoted context omitted.

It is a mechanism to move labor costs to the consumer. On some delivery apps , the driver can decide which jobs to take based on the pre-service tip. So the companies have effectively put the responsibility to pay driver's base wage on the users themselves, while the company still takes a huge corporate cut

On delivery apps it should be called a "bid" and I think honestly it would be more ethical than the shady nonsense they do now if they went all in on that.

If the apps were actually what they claim to be (a marketplace to connect hirers and workers) that's exactly what you'd have - the cost of the food + flat fee for the platform + your bid for the work. The platform could even suggest a bid, but you could choose to bid higher or lower depending on what you think would go through.

But that's not what they are; they're shady "avoid employment laws" companies.

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

#430

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 !

Depends on when you are. Making minimum wage while living in Paris isn't exactly a "proper living wage".

That isn't the customers problem though nor should it be.
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