Earlier quoted context omitted.
It's $2.13 for tipped employees.
The 2.13 tipped wage is a great way to know if you're in a "shithole" state or not. Only shithole states keep that.
Same goes for the regular 7.25 federal minimum.
“No tax on tips” is an industry plant
451–460 of 618 posts
Re: “No tax on tips” is an industry plant
#452Earlier quoted context omitted.
There’s very little empirical evidence correlating tipping with better service.
There is evidence correlating being attractive to getting better tips, interestingly.
100% this! I hate how the main narrative it seems like Americans believe about tipping, especially among a certain set of privileged college-educated Democrat types, is that tipping is this virtuous practice that benefits the underclass so much, when really, it benefits restaurant owners most, and if any workers are better off under a tipping system, it's a small minority, like highly attractive white female servers in establishments that have rich clientele. Everyone else would be better off if prices (not a surcharge) went up once by 20% and restaurants spent that money on wages and abolished all tipping.
Re: “No tax on tips” is an industry plant
#453> But, when three members of the group came forward to testify, all expressed support for the Tipped Workers Protection Act and opposition to the One Fair Wage Act, which they portrayed as an effort to steal their tips
This article is missing a real issue here by trying to make the story all about the employers. Many workers like the tip system because it creates inequality among the restaurant workers. Good servers can earn a lot more money than what they’d earn if every server were paid the same, fair wage.
My mom used to work at a furniture store as a floor sales associate on commission. She would regularly clear $120,000/year (this was 15 years ago, so like $180,000 today). A generous wage for the job at the time probably would’ve been $50,000 or so. She would’ve fought such a policy tooth and nail.
Re: “No tax on tips” is an industry plant
#454Earlier quoted context omitted.
> 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?
>Are there still customers giving tips as "a reward for good service"? As in any tip at all? No, from me. I don’t think I’ve never _not_ tipped when the situation expects it (sit down restaurant being served). I know the person there is being paid less than minimum wage (where I live), which is already too low in my opinion, so they get something. The amount of the tip certainly is highly dependent on level of servic…
> I know the person there is being paid less than minimum wage (where I live)
The restaurants I worked at (a variety of family places and bars) everyone was paid $2.13/hr or something like that. And after taxes, you would get a paycheck for $0.00.
but
The same people who jumped to tell you that they got paid less than minimum wage (especially when customers inquired about it), were making $40-80K year in reality. The service industry is all about hours worked, and which hours you work. A lot of young workers refuse to work the busy shifts (weekends), and hate dinner shifts (could be out with friends) so they only work the slow shifts and make ~$20/hr * 18 hours or something like that.
But the people there to make money? They work all the busy shifts and slow shifts to fill the gap (they work a full 40 hours), and the money is insane for what the work is. Meanwhile they will happily tell you they get paychecks for $0.00 and only made $50 on Monday at lunch.
Re: “No tax on tips” is an industry plant
#455Earlier quoted context omitted.
It's not that simple. Restaurant owners don't pay payroll taxes on tips, but they do pay it on regular wages. Raising restaurant menu prices by 20% (or the average tip amount) will not result in 20% (or the average tip amount) more going to the workers. Some restaurants have tried this out, and it's backfired. Restaurants already run on very thin margins; a loss of a few percent can kill them. Also consider that cust…
"Some restaurants have tried this out, and it's backfired. " Where I live, many restaurants have the "required 18% gratuity" thing and ask that you not tip beyond that. Maybe this is a PNW hippie specific thing, but a movement against tipping exists and is being ran by some good, successful, restaurants.
Making the tip required isn't a movement against tipping, it reenforces the idea.
Try increasing the posted food prices by 18%, or add a "18% owner boat fund", instead and see what happens. You won't last the week before you are bankrupt. The amount is exactly the same, so from a financial point of view there is absolutely no difference, but the experience of "helping out the little guy" is lost, and that will chase clientele away. For all the huffing and puffing we hear, actions speak louder than words. The reality is that customers like tipping!
Re: “No tax on tips” is an industry plant
#456Earlier quoted context omitted.
I think most bartenders would appreciate an extra $25k.
I am sure they would! but that isn't what the law says. Its a $25k DEDUCTION. If someone earned $125k salary + $25k in tips. Their taxable income would decrease by about $6k (or $500/mo, 4% overall).
Okay. I think they would also like an extra $6k.
Re: “No tax on tips” is an industry plant
#457Earlier quoted context omitted.
It might be a way for them to prioritize your order before others as they see how much money they earn, so actually it's a bidding process disguised as tipping. I'm not sure if it's shown in the backend though, but I have seen things like this in other delivery apps.
Why would they prioritize you when you've already paid? Wouldn't they first go after the possibility of more tip money on jobs that haven't yet paid it? I mean, if I was a driver, unless there are more high tip jobs than I could handle, I'd take those and fill in with low tip jobs, and I'd deliver the low tip jobs first in a hope of getting an after the fact tip.
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Re: “No tax on tips” is an industry plant
#458Earlier quoted context omitted.
> Are there still customers giving tips as "a reward for good service"? Are there customers giving tips for other reasons? Any examples?
Well I am giving tip because of fucking nag screen on payment terminal.
Can the screen be ignored, e.g. when tipping with cash?
Re: “No tax on tips” is an industry plant
#459What 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
That's not a tip, it's a bid. Expect a lot more businesses to start operating like this if no tax on tips goes into effect.
Re: “No tax on tips” is an industry plant
#460Earlier quoted context omitted.
https://archive.is/20250731232051/https://www.newyorker.com/... > Some tipped workers, like bartenders, can make more in tips than a junior software engineer lol. Less taxes definitely helps their cause. neat, but you can only deduct up to $25k and the benefits phase out if you earn more than $150k (single filers).
I think most bartenders would appreciate an extra $25k.
That's...not how it works, like, at all. It's a tax credit, not actual money that you pocket additionally from your existing paycheck. It also only lasts until 2028.