TIPPING IS PLAIN STUPID!
BOTTOM LINE:
So why do we allow this scam, in the form/system of "tipping," to go on by our participation in this practice?
Easy! Mainly because of the massive social pressure on us to do so.
Also, there is the vanity aspect--we ourselves, love to tip-- "put on the dog," as they say --by impressing ourselves and others in our demonstarted generosity and ability to reward, handsomely, those "underlings" --yes, perceived underlings, if you care to be honest with yourself about it--even though said underlings may easily be pocketing higher wages than you yourself and for less effort.
And, their employers are laughing at all of us while they are quite content with their lower operating costs, as they, and the IRS, manipulate the whole scene to their personal advantage.
What If....
All costs of going out for meals, etc.--both goods and services--were included in the cost as listed--just like most other things. No tips, surcharges, gratuities, no BS!, whatever... WHAT A CONCEPT!!!
Click on this link, a release from the ways and means committee says that unreported tip income has reached $85 MILLION DOLLARS!!!!! When the IRS decides to go after this money they don't target the waitstaff: too much hassle. What they do is audit the restuarant and we all know what employers do to make up any losses: stick it to the staff which means pass it on to the customer.
The great thing about this is that once the IRS starts really demanding tips be reported this is simply going to mean that waitstaff salaries are going to go up and we're going to pay more. Which is fine with me. I'd much rather pay my bill than be treated like crap for not tipping. In this economy we should be thankful for any jobs we have.
Vin
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I have worked as a waitress for several years and I must say that I do agree that tipping has gotten out of control. Servers (to be politically correct) are not paid fair wages. I, personally, am paid $3.85 per hour by my employer. I am told to report tips at the end of each shift, which I do. Many servers I work with declare very little if any tips, which is where your tax issues lie. Unfortunately, the only way to take care of the tax issue is to do away with tipping, but the restaurant business would never allow it because by having employees who under-report their income the restaurant saves money on taxes also. Meanwhile, the restaurants can fight with the IRS over not being able to accurately assess what the taxes are because of the under-reported tips and there goes the circle of arguements between the IRS and the restaurant industry which has been going on for years and is costing the taxpayers a fortune for litigation.
Anyway, servers have the good life when it comes to their pay because many are making over $20 per hour in tips. I've known people to work about 40 hours a week and make $1000. Where else can this be done without any formal education. It really is unbelieveable that you can make $52,000 a year as a waitress (paying taxes on only half of that), but you work hard to get a degree and can't get a starting salary that high. Unfortunately, or maybe it is appropriately so that, in the long run, the server is the one who suffers because unemployment, disability and social security benefits are all based upon your income and if you don't claim it, you can't benefit from it.
So, do away with tipping? Sure. Just be prepared to pay more when you go out to eat and don't expect your bartender will be so willing to listen to your problems if you aren't paying him/her to.
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