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Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

theguardian.com

201–210 of 228 posts

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#201

Earlier quoted context omitted.

> People got generous during COVID True, but the problem really seemed to start when the swivel-to-face-customer POS terminals from Square/etc started to be used - the ones that display these 15/20/25% tip prompts. I'm trying to think if I've ever seen one of these terminals that doesn't prompt for a tip?!

Square takes a cut of the entire payment, including tip.

So they started this whole trend just to line their own pockets, it would seem.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#202
post #185

Earlier quoted context omitted.

why would you tip a barber? because they cut your hair good? what was the base payment for then?

> why would you tip a barber? because they cut your hair good? what was the base payment for then? Let me return the question: why would you tip a waiter? because they brought your food to your table? isn't that why they should be paid by the restaurant? Let me also state that, residing in a European city, I do tip my (cheap) barber every time I go because I feel they do an outstanding job at 20% less the price than…

"Let me also state that, residing in a European city, I do tip my (cheap) barber every time I go because I feel they do an outstanding job at 20% less the price than most competitors, and that work deserves praise in the form of a tip."

Do you also tip your local bike shop or computer store when they sell you a computer or bike that is outstanding and costs 20% less than most competitors? Do you tip your car salesman? Do you tip your bus driver when he/she is 20% faster?

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#203

Earlier quoted context omitted.

Much as I hate corporate greed, I actually disagree with this one. By and large, huge corporations tend to know that tip prompts annoy people and don't have them. An overwhelming majority of the egregious tip asks, either for generic not-normally-tipped services, or prompting "25%, 35%, or 45%?", have been small businesses or food carts, especially in tourist-heavy areas. Corporate greed isn't really part of it, beca…

I didn't say huge corporations. Small companies are not somehow immune. Higher tips for workers absolutely makes its way to shareholders or owners, just not directly. They don't need to pay workers as much, and they will see lower staff turnover.

You are absolutely correct. However, when people talk about "corporate greed", they usually are talking about large corporations with shareholders, not a food cart with three employees.

I find the second point questionable. Firstly, the two options you give are mutually exclusive; either they don't have to pay staff as much, or they will see lower turnover. Lower wages made up for by tips will not decrease turnover if the owner passes that on to themselves via lower wage.

Secondly, and this is a regional thing, but where I live (Oregon) there is no exemption from minimum wage for tipped workers. Workers who make tips must still be paid at least the base minimum wage as everyone else. This puts a hard floor on how low wages can go regardless of tips.

I'll acknowledge that there can be some benefit to owners and shareholders from tips, but I do not think that the tip gouging that has become common benefits a shareholder more than it hurts them via consumer frustration.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#204
post #17

IMO it's just bad policy all round without a significantly higher level of detail. For example, how do we classify a tip vs a wage? If we're not very, very specific about it's going to be yet another tax loophole exploited by the rich who will pay each other $1 for work and then 'tip' thousands more. Sure you’re an engineer on staff now but wouldn’t you want to be a freelancer, paid minimum wage and then a healthy “t…

> For example, how do we classify a tip vs a wage? Tips are well defined by the IRS, including reporting requirements: https://www.irs.gov/businesses/small-businesses-self-employe...

From your link:

> Tips include:

> Cash tips received directly from customers.

> Tips from customers who leave a tip through electronic settlement or payment. This includes a credit card, debit card, gift card or any other electronic payment method.

> The value of any noncash tips, such as tickets or other items of value.

> Tip amounts received from other employees paid out through tip pools, tip splitting, or other formal/informal tip sharing arrangement.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#205
Its a distraction from how stupid minimum wages are and from how chain restaurants probably abuse geographic labor oligopolies to push down wages making minimum wage a less bad policy than the correct policy of no wage controls. We meed to fix both.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#207
post #17

IMO it's just bad policy all round without a significantly higher level of detail. For example, how do we classify a tip vs a wage? If we're not very, very specific about it's going to be yet another tax loophole exploited by the rich who will pay each other $1 for work and then 'tip' thousands more. Sure you’re an engineer on staff now but wouldn’t you want to be a freelancer, paid minimum wage and then a healthy “t…

thing about tips is I'm sure a large portion of tipped people just pocket the cash & don't report it - missed tax revenue. So if they just say, "pocketing it is legal", what tax revenue was lost? Some, but not as much as say a salaried tax cut.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#208
Is it really a fight? On who's behalf is this fight happening, and who is fighting for it?

I've never met a service worker who relies on tips that wanted to end the practice. Tips seem to be the entire draw to those types of work in my experience. I've never met a tip worker that was doing it over a wage job they'd rather have, unless it was some type of professional salary type gig like they're going to school to become a nurse or something, and in those cases, they're doing tip work because it enables them to make that happen when no other job really would.

Seems to me like the people fighting for it aren't the people living that way and those fighting are fighting on behalf of people who don't really want their help.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#209
post #202
post #185

Earlier quoted context omitted.

> why would you tip a barber? because they cut your hair good? what was the base payment for then? Let me return the question: why would you tip a waiter? because they brought your food to your table? isn't that why they should be paid by the restaurant? Let me also state that, residing in a European city, I do tip my (cheap) barber every time I go because I feel they do an outstanding job at 20% less the price than…

"Let me also state that, residing in a European city, I do tip my (cheap) barber every time I go because I feel they do an outstanding job at 20% less the price than most competitors, and that work deserves praise in the form of a tip." Do you also tip your local bike shop or computer store when they sell you a computer or bike that is outstanding and costs 20% less than most competitors? Do you tip your car salesman…

I might tip a bike or computer shop for doing a superb job at repairs. Hell, if I were to hire a person to build a computer for me I might tip them if they did an exceptional job. Tips are for services (like a barber provides), not products (like computers, bikes, or cars).

Tipping in the example circumstances I gave isn't typical, but it's something I would consider doing in exceptional circumstances.

Re: Is 'No tax on tips' a distraction from the fight to end sub-minimum wages?

#210

Earlier quoted context omitted.

I always found it strange that modern socialists and leftists are very supportive of income taxes, even though it is a dreadful burden on those people who have to work for their survival. Why wouldn't leftists instead be more for taxes and tariffs on land, on commerce, on natural resources or on luxuries? The funny thing is that one of the goals of the communist party in the Soviet Union was to abolish all income tax…

one reason is that it's hard for a leftist to imagine a world where people making millions or billions to have a 0% income tax rate

People don't make millions or billions on working and receiving a salary.
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