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The title says "because higher wages", which of course touches all kinds of buttons. But if you read a couple of lines down, it's because of the broken taxatio
by drugme 8y ago
The title says "because higher wages", which of course touches all kinds of buttons. But if you read a couple of lines down, it's because of the broken taxation system:
There are many reasons restaurants close. But one reason comes up again and again—California is raising minimum wage without letting restaurant owners count tips as wages, and yet still taxing restaurateurs on those tips. It’s a financial double-whammy they can’t recover from.
- yongjik 8y agoIf this leads Californian restaurants to declare "We don't take tips because we pay our staff livable wages (and also we pay less tax that way)", then I am one hundred percent behind this particular taxation system.
- olliej 8y agoTips aren’t counted as wages because federal minimum wage is lower for service. Many restaurants are switching to just charging true price and removing tips, which clearly solves this problem. At issue is that there are businesses that don’t want to pay market rates for labor but also don’t want to list the actual cost of the meal.