4 ms·
The answer given to the headline question in the article is... "The evidence is mixed—and the practice varies widely across the world" "Tipping also passes a c
by blakesterz 5y ago
The answer given to the headline question in the article is... "The evidence is mixed—and the practice varies widely across the world"
"Tipping also passes a chunk of risk from managers to servers, especially when between 20% and 60% of a waiter’s income may be in tips, as is often the case in America"
That number seems low, or at least in my outdated experience, it's low. I spent most of the 90s working in restaurants and tips were probably 150% of my income. I was paid very little per hour, and made quite a bit in tips. I then had to claim tips, which was always a smaller number than I actually made. I was paid $3 something an hour, made like $50 an hour in tips, and claimed like $20 in tips. Maybe that's not how it works now?
- menage 5y agoI assume they mean 60% of total earnings, not 60% of base wages. Tips can't end up being more than 100% of total earnings.
- Enginerrrd 5y agoThey can be more than 100% of claimed income though.
- hammock 5y agoYes. In which case "150%" would be 60%. (150/(150+100) to save the readers the math)
- patrick451 5y agoWhat do you mean that tips were 150% of your income? If you made $50/hr, and $47 of that came from tips, then tips were 94% of your income, and the wage was 6%.
- Enginerrrd 5y agoIt means he claimed $20 in income from tips, and pocketed the extra $30 in tips. You two are just using different definitions of "income".
- sammoody 5y agoSounds like we have tax cheat on our hands
- bluefirebrand 5y agoI'd be willing to bet that everyone who works for cash cheats their taxes. But not as much as millionaires do.
- Ekaros 5y agoI have always wondered. Can you ask a receipt for a tip you pay in cash and then collect those and send to IRS? Like proper good citizen should?
- bluefirebrand 5y agoNo idea. I don't live in the States. I imagine no one would ever give a receipt for a tip though.
- Enginerrrd 5y agoThey actually have something like this in other countries. I can't recall exactly how it works, but it's something like store sells younsomething, you get the receipt, and then it's somehow incentived so that people send their receipts into the government, so people actually do it and then you have a second party that basically reports sales to the government.
- lacksconfidence 5y agoOdds are good that every person I've ever tipped is a tax cheat.
- j_walter 5y agoDepends on which state...some allow sub-minimum wage if getting tips and some require minimum wage no matter what. So someone in OR or WA will get $14/hr + tips.
- wombatmobile 5y ago> tips were probably 150% of my income That makes you an entrepreneur. But unlike other entrepreneurs, you don’t get to deduct the costs involved with turning up to the market.