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“No tax on tips” is an industry plant

newyorker.com

101–110 of 618 posts

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

#101
post #92

Earlier quoted context omitted.

Yep. It's wonderful throwing a few extra bucks to some euro waiter and watching them treat you better than everyone else.

When they treat you better? In the last 2 minutes after you payed just before you leave?

> In the last 2 minutes after you payed just before you leave?

Definitely the next time I come back.

Restaurant workers should earn a good wage. Tipping should not be mandatory. But tips, in particular large tips, are fine and work globally.

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

#102
post #73

Earlier quoted context omitted.

There’s very little empirical evidence correlating tipping with better service.

There is definitely a huge difference in countries where they tip and countries where they don't tip.

[dead]

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

#103
post #60

Earlier quoted context omitted.

Beware the logical fallacy. "A implies B" does not mean that "not A implies not B". Workers who earn too little to pay taxes (A) will not benefit from a tax cut (B). But workers who earn enough (not A) may still not benefit (not B), for example because their employer indirectly pockets the difference. That is actually being argued in the article. So this is indeed the appropriate way of formulating the statement: at…

But it would be true to say not B implies not A right? (contrapositive?)

In that case B would be "is not taxed on the income" and A is "part of the 40%" making the statement not B implies no A: "If you are taxed on your tips that implies you are not part of the 40%".

That seems correct. It's a pretty useless statement, but it is true.

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

#104
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.

> who's getting tips in cash?

About half of the large tips at high end restaurants in my town are cash. Sounds like it is about a third in New York. Especially if it is folks who work at a restaurant.

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

#105
post #86

Earlier quoted context omitted.

The tip is usually given at the end of the service. How does that ensure a better experience during?

You're asking how a tip can influence a server, if they don't know it's coming. But in America they do know it's coming, at least, there is a cultural norm of tipping being expected. So it makes sense that a server would do what it takes, to make sure that it happens.

That's what the money is for!

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

#106
post #105

Earlier quoted context omitted.

You're asking how a tip can influence a server, if they don't know it's coming. But in America they do know it's coming, at least, there is a cultural norm of tipping being expected. So it makes sense that a server would do what it takes, to make sure that it happens.

That's what the money is for!

Huh? The OP asked how a tip could influence the service, if it came after the service was delivered. It's pretty easy to understand, when a tip is the cultural norm.

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

#107
post #73

Earlier quoted context omitted.

There’s very little empirical evidence correlating tipping with better service.

There is definitely a huge difference in countries where they tip and countries where they don't tip.

Yeah, the huge difference is that in the US waiters or even managers might confront you if you choose to not tip.

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

#108

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

Yes, and my understanding is that this is precisely the point.

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

#109
post #83

Earlier quoted context omitted.

Tips subsidize profits, plain and simple. But, America runs on poverty, so this is in line with the broader socioeconomic strategy.

> Tips subsidize profits, plain and simple. Nah. Profitability for the business would be higher without tips. I take x% of gross income as profit. No tips means I can charge the customer more, which means a higher gross income, which means more profit. When tipping is involved, the money slips through without allowing the business to take its cut. Good for the server, but not good for the business. However, as theore…

Why do you take a fixed profit. Why don’t you charge the amount which maximises profit?

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

#110
I can kind of see the average traditional service work position to shift into a Uber-esque model where you are a essentially a gig contractor. The worker takes the full risk for slow days, and the business owner does not have to pay you a salary, as everything comes from the customer.
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