I've always presumed that a large part of this is tax evasion. Cash tips are legally required to be reported as income, but I'd guessing that they are very rar

I've always presumed that a large part of this is tax evasion. Cash tips are legally required to be reported as income, but I'd guessing that they are very rarely reported in full. The increase in salary would have to be quite a bit higher than the amount lost in tips to make up the difference. I'm base my guess on my personal experience, but I could be wrong. Does anyone have numbers that would prove or disprove this?