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That doesn't make sense. You aren't getting lower food prices at all if you are obligated to tip. Rather, the actual prices of restaurant food items are just un
by tetraca 7y ago
That doesn't make sense. You aren't getting lower food prices at all if you are obligated to tip. Rather, the actual prices of restaurant food items are just undermarked by 15-20% of their actual cost.
- Scoundreller 7y agoUsually the income isn’t being reported by the tip-earner/takers, and you’re not paying sales tax on the service received.
- tetraca 7y agoThe former is only going to be true if you pay them in cash; I don't believe credit tips are so easy to hide. The latter is inconsequential.
- Scoundreller 7y agoDespite the paper trail, local details of audits I know of, indicated that workers still underreport. https://www.google.com/url?sa=i&source=web&cd=&ved=2ahUKEwjAoKn1r87jAhUGhOAKHZoXCOEQzPwBegQIARAC&url=https%3A%2F%2Fwww.theglobeandmail.com%2Freport-on-business%2Fsmall-business%2Ftalent%2Fcra-cracks-down-on-undeclared-tips-for-restaurant-and-bar-staff%2Farticle38025478%2F&psig=AOvVaw25KPnbsGl-zm27zDn8KG_Q&ust=1564085833556183 https://www.google.com/url?sa=i&source=web&cd=&ved=2ahUKEwjA... Anecdotally, it remains true. Tips don’t go on the official pay reports that go to the Canadian government since it isn’t actually employment income paid by the employer. Why would sales taxes be inconsequential?
- gambiting 7y agoI guess because you're only not paying sales tax on the tip portion of the payment - so if the sales tax is say 10%, your bill was a $100 and you left a $10 tip, you're only saving $1 on the sales tax.
- tetraca 7y agoAnd if that mere dollar would influence you on whether or not you were going to go to the restaurant, you probably shouldn't have ever been going to the restaurant.
- Scoundreller 7y agoIt still means an industry is paying ~85% of the sales taxes it should. Overall, businesses will charge what they can. And if they don’t have to pay taxes, they can keep that $ for themselves.
- RHSeeger 7y ago> the actual prices of restaurant food items are just undermarked by 15-20% of their actual cost. Right, and it's undermarked because you are expected to tip.
- gambiting 7y agoBut you said that you get the "benefit" of lower prices - but I just don't see that benefit if it's mandatory to then tip 15%. Whatever reduction in price you're getting you'll pay in tips, so as a customer you're getting shafted either way. No?
- RHSeeger 7y agoYou're not getting shafted. If you tip, you're paying the same amount as if there weren't tips and the prices were raised to account for it. There's nothing "shafted" about "paying the same amount". The only differences are - You can choose to pay less if things aren't good, or pay more if things are great. - If you're someone that is heavily impacted by other people's opinions, then you may feel bad tipping less. But all that means is that you don't get one of the benefits. You get the "benefit" of lower prices... and you're expected to tip to balance the scales.