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“No tax on tips” is an industry plant

newyorker.com

11–20 of 618 posts

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

#11
post #2

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

Sounds like those Americans aren't paying their fair share.

The negligence of their national responsibility will be felt like an earthquake by millions of Americans. It's hard to imagine how they live with themselves.

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

#12
post #7
post #2

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

I have an honest question: what's the cash vs card tip ratio? 99.999% of the time I am not carrying cash and I don't see many (any?) people paying with cash ANYWHERE in the last 10+ years.

Almost no one can give you a good answer because it varies by business type and location.

My business does not involve tips (exactly) but I can tell you that I’ve seen anywhere from 20-40% of money run through my system being in cash, depending on where I am in the country.

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

#14
post #7
post #2

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

I have an honest question: what's the cash vs card tip ratio? 99.999% of the time I am not carrying cash and I don't see many (any?) people paying with cash ANYWHERE in the last 10+ years.

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.

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

#15
post #2

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

Which made a difference 2 or 3 decades ago.

But today, who's getting tips in cash? Not many. Customers are paying for everything with credit cards or contactless, save for the occasional cash-only coffee shop or restaurant.

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

#16
post #2

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

Which made a difference 2 or 3 decades ago. But today, who's getting tips in cash? Not many. Customers are paying for everything with credit cards or contactless, save for the occasional cash-only coffee shop or restaurant.

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.

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

#17
post #2

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

Which made a difference 2 or 3 decades ago. But today, who's getting tips in cash? Not many. Customers are paying for everything with credit cards or contactless, save for the occasional cash-only coffee shop or restaurant.

> But today, who's getting tips in cash?

Every server who waits on me.

I make it a point to carry cash and tip the waitstaff in cash even if I pay the bill on my credit card.

1) Tips on credit cards are a "dark pattern" meant to increase the house rake of the credit card handling companies.

2) Tips on credit cards are controlled by the owner and often never make it to the waitstaff.

I can short circuit this by giving my servers tips in cash.

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

#18

Earlier quoted context omitted.

Which made a difference 2 or 3 decades ago. But today, who's getting tips in cash? Not many. Customers are paying for everything with credit cards or contactless, save for the occasional cash-only coffee shop or restaurant.

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.

[deleted]

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

#19

Some interesting points: ~40% of tipped workers don't make enough to get taxed anyway, no tax on tips would actually advantage better paid workers like casino dealers who don't need the help. NToT is described as a campaign to distract from minimum wage increase initiatives.

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.

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

#20
post #2

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

Which made a difference 2 or 3 decades ago. But today, who's getting tips in cash? Not many. Customers are paying for everything with credit cards or contactless, save for the occasional cash-only coffee shop or restaurant.

tbf it's one of the few times i try to carry cash.

I just don't trust management of places not to take a cut if it's done digitally.

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