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.
“No tax on tips” is an industry plant
421–430 of 618 posts
Re: “No tax on tips” is an industry plant
#422It’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".
Re: “No tax on tips” is an industry plant
#423Earlier 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.
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
#424Earlier 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 ?
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
#425Earlier 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
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
#426Earlier 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.
Re: “No tax on tips” is an industry plant
#427Re: “No tax on tips” is an industry plant
#428What 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 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
#429Earlier 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.
But that's not what they are; they're shady "avoid employment laws" companies.
Re: “No tax on tips” is an industry plant
#430Earlier 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".