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“No tax on tips” is an industry plant
111–120 of 618 posts
Re: “No tax on tips” is an industry plant
#112It’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.
The crazier part is that it's spreading to more industries and more countries thanks to Americans thinking they should tip everyone everywhere. Thanks.
Living in Ireland from 2013-2023 I saw tipping get _much_ more common, sadly.
Re: “No tax on tips” is an industry plant
#113Some 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.
Well, to be fair, the IRS considers the average tip to be 8% for taxation purposes.
The whole "I get taxed whether you tip me or not", "I have to pay to serve you if you don't tip"? No, not so much. If you can show (there's even a hugely burdensome IRS form that might take as much as 3-4 minutes a month for cash tips) that you earned less than that 8% average, then that's what you get taxed. But most servers don't want to fill that form out, because they get ... rather more than that, and are being undertaxed already.
Re: “No tax on tips” is an industry plant
#114Earlier quoted context omitted.
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.
Why?
Re: “No tax on tips” is an industry plant
#115Earlier 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.
Yep. It's wonderful throwing a few extra bucks to some euro waiter and watching them treat you better than everyone else.
In my experience they are often confused and sometimes insulted. Generally I found tipping to add friction to the transaction.
Re: “No tax on tips” is an industry plant
#116Earlier 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.
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, DC and Miami.
Re: “No tax on tips” is an industry plant
#117Earlier quoted context omitted.
I live in California and this isn't true here. All restaurant workers receive at least minimum wage before tips. In my city, that's $19/hour with health insurance. Of course, you're still expected to leave a tip and suggested minimum is now 20%, plus even McDonalds is charging $15 for a 4 oz burger, so I rarely go out to eat at places that expect a tip anymore. I'm not sure why they specifically should be tax exempt…
> I live in California and this isn't true here I made a longer comment in the main thread[0] because I think there's a tendency for conversations about tipping to degrade as people are making different assumptions based on the different laws of where they're from or grew up. To be clear: - Any worker that is not making *at least the state's minimum wage* (including tips) is suffering from wage theft. (with the excep…
Servers, often, seem to think it's our (the customer's) obligation to compensate for the sins of their employer.
"Many restaurant owners illegally don't actually follow this law". "Report them to the DOL". "I don't want to do that. You should tip me to make sure I have a livable wage instead."
Re: “No tax on tips” is an industry plant
#118It’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.
The crazier part is that it's spreading to more industries and more countries thanks to Americans thinking they should tip everyone everywhere. Thanks.
No, it's spreading because corporations are waking up to what an insanely good deal "pay my employees for me" is.
In my state an employer is only responsible for raising an employee's effective wage (for the entire pay period) to minimum wage if the tips don't.
You can tip someone working as a waiter $100 and unless they've already hit minimum wage for that pay period, all you're doing is handing $100 to the owner because it's $100 they don't have to pay in wages. Once the waiter has met minimum wage, then the money actually goes to them.
Re: “No tax on tips” is an industry plant
#119Earlier quoted context omitted.
California doesn't have a special minimum wage for tipped professions? When I was waiting tables a long time ago I think my pay was $1.95 an hour. It was usually just enough to cover tax on tips (the ones we admitted).
> California doesn't have a special minimum wage for tipped professions? NO STATE has a "special minimum wage for tipped professionals". MOST STATES allow tips to be * credited* towards wage, but NO STATE allows an employee to be paid less than minimum wage. There's a "special minimum wage THAT EMPLOYERS MUST CONTRIBUTE TOWARDS a tipped professional' S WAGE ", but that's a very different thing than "the minimal amoun…
> If the employer does not make at least $x towards an employee's wage, the employer is guilty of wage theft.
See what your server's reaction is if you tell them to report this wage theft.
They won't. They'll just suggest you tip them to compensate.
Re: “No tax on tips” is an industry plant
#120Earlier 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.
Yep. It's wonderful throwing a few extra bucks to some euro waiter and watching them treat you better than everyone else.
> "treat you better than everyone else."
People say this, but what is better service?
It's not like you get better or more food, or get the food faster since all that depends on the kitchen that isn't getting tipped directly.
It's pretty much them coming to your table to take your order. I'd much rather have a free burger or drink (the equivalent of what I could get instead of tipping) with the slow service than get my water refilled every 5 minutes.