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It also benefits the tipped worker because they get to see more of that portion of their paycheck. Sales tax is never paid on tips and Income tax is rarely, if
by scarejunba 8y ago
It also benefits the tipped worker because they get to see more of that portion of their paycheck. Sales tax is never paid on tips and Income tax is rarely, if ever, paid either.
It's just a tax exemption that we've encoded into social behaviour.
- Camillo 8y agoIt's not a tax exemption, it's tax evasion. Same for all those "cash only" places - they're simply not declaring most of their income.
- metaphor 8y ago> ...Income tax is rarely, if ever, paid either. If tips are handled in the digital (as opposed to cash), doesn't that change the meta with respect to traceability?
- zaarn 8y agoOr, you know, business owners could pay their workers enough that it doesn't matter.
- robocat 8y agoIt also harms the tipped worker. How many times have you seen a young service worker prostitute their feelings towards some arsehole or bitch, because the worker really needed the income? I live in a mostly tip-free country, and I am sure most front line workers here have a lot more agency to deal with nasty customers. Although the downside is that service staff have few ways to earn more except by changing jobs...
- Sohcahtoa82 8y ago> Income tax is rarely, if ever, paid either. This is quite illegal. Tips are income, and still have to be taxed.