I would say generally 20% is the modern standard. I don't agree with the bill, because your taxation should not depend on whether your income is called tips or salary (big win for waiters and strippers though). What if we made all income tax free instead and radically reduced government spending?
When we are in Ireland, there is generally no line for a tip on the bill. I'm not sure but I believe a lot of Europe is the same way. I may be wrong. We always throw 20 euros at our bartender if we sit at the bar and eat in da Pub Slainte.
Tipping goes beyond food services. Much of the income from the gig economy is based on tips. For clarification, there are two different discussions here - 1) what is a fair tip 2) Does the government have business being involved in private to private transfer of money.
The vast majority of tips is from low income earners. They dont have time or the experience on how to properly manage the business side of taxable income. Also, gig economy will continue to expand and restaurant services will stagnate. A tip is generally a gift ... a way of saying thank you for going above expectations. This should not be taxed. I do agree businesses abuse the practice of tipping and they should be held accountable. For example, businesses should be forced to pay minimum wage. I do agree we should start getting away from income tax. For starters, the first 100k a year should be tax exempt. Then we can squeeze the IRS into a much smaller organization.
Okay? Why should I be required to subsidize their ignorance? I don't think people will stop eating out. That may have been the original intention, but tips have become de rigueur. When people get mad if you don't tip them for doing the bare minimum of their job, it is not a gift or way of saying thank you, it is insurance against future retaliation. Businesses can and should pay as little as their employees are willing to work for. There should be no arbitrary limit on what is not taxable and the IRS should be scrapped entirely.
The other day I went to this quick service restaurant where I ordered from a kiosk, and had to get my own drink and walk over to pick up my food from a window, etc. And the Kiosk asked me if I wanted to give.... not a 15,18, or 20% tip... .but a 20,25, or 30% tip..... TO WHO???? The fcking computer??? In this country, businesses are so worried about tactics to lure people in, and then find ways of sneaking in extra revenue through crap like this, or by getting the customer to pay your workers for you. It's insane, and people really just need to understand that people will still pay for what they value. If you have to do these little gimmicks to keep the doors open then you need to wake up that your business strategy probably sucks.
Would you like us to round up your grocery purchase today to the next dollar so we can help support The World Daschund weight reduction fund.
Saw a restaurant menu the other day with a blurb on the menu requesting the kitchen staff be tipped if the food was good.
That is a scam, they literally use YOUR roundup monies to offset their profits so they pay less taxes. I always say no - Taco Bell pulls the same ****, I have a friend that says each store aims for 5k per month in roundups to offset it's revenue, that is 60k a year that is not being taxed PER location, which is much more helpful to society than the 5k roundup to charity. DD
