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Wages will adjust such that restaurant workers make roughly the same amount that they would have with tips, except for one critical thing: they'll be more relia
by dingnuts 3y ago
Wages will adjust such that restaurant workers make roughly the same amount that they would have with tips, except for one critical thing: they'll be more reliably taxed because their wages will be reported by their employers on their W-2s instead of part of their wages potentially being received as cash.
I am convinced this is the real reason that there is suddenly a push to end tipping culture in the US. The tax man wants his.
Anyone that understands economics understands that the overall effect of ending tipping will have very little real effect on wages. All it does is give employers and tax collectors more power over these low wage earners.
- FireBeyond 3y agoIt also explains why service staff simultaneously play the underdog of impoverished and selfless, while resisting the urge to move to a more regular taxed income mechanism.