this post was submitted on 17 Aug 2024
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Not American so perhaps I'm missing something, but doesn't it make sense tips are taxed? It's income, so why wouldn't it be?
Tips should definitely be taxed. Otherwise you'll end up with businesses shifting entire income of their staff to tipping which IMHO is horrible (on top of depriving the government of income)
If wait staff weren't expected to make up their less than minimum wages with tips (which is legal), yes. But they're totally fucked as it is right now.
Imo if the worker is payed so well thet tipping is unusual, that should be the norm. Then when I have a reason, my kid puked on the table and the waiter cleaned it up or whatever and I feel like giving them 20, that should be tax free. As long as tips are a significant part of income it should be taxed. Not taxing tips doesn't fix the problem that workers are not payed enough.