this post was submitted on 11 Aug 2024
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[–] [email protected] 22 points 1 month ago* (last edited 1 month ago) (2 children)

Wait... Why wouldn't tipped employees pay taxes on that part of their income? Or am I not understanding what they mean?

I worked for tip for over a decade and to me it's perfectly normal that I would pay taxes on my earnings, especially when I had colleagues that didn't work for tip with about the same total income and taxes would be taken from their paycheque automatically, why would I not pay taxes on half my income if they had to?

[–] [email protected] 3 points 1 month ago (1 children)

Until Reagan there wasn't any tax on tips because it was considered gifts, not income. The word 'gratuity' still reflects that.

[–] [email protected] 3 points 1 month ago

Not much of a gift anymore when everyone expects a minimum of -- what is it now -- 25%? The expected minimum percentage keeps increasing as people endlessly grandstand about the amount they pay because of how much workers depend on tips for their income. Then there's shame at play if you don't comply, with some thinking it's okay to mess with the food if one doesn't pay the expected minimum "gift". It's really just extortion at that point.

[–] [email protected] 0 points 1 month ago (1 children)

If I gave you $100 as a birthday gift, would you expect to claim it as income?

[–] [email protected] 3 points 1 month ago* (last edited 1 month ago) (1 children)

Is my birthday work that I accomplish in order to earn money?

I don't know how you can think that a gift is the same as remuneration. Meet the workers after their shift to give them a hundred if you want it to be a gift, but if you're giving it to them as compensation for the work they've accomplished while they're on duty then it's income.

[–] [email protected] -1 points 1 month ago (1 children)

It's not remuneration though, it's literally money I already paid taxes on that I'm giving to a server as a thank you. I'm not their employer.

[–] [email protected] 2 points 1 month ago

The salary they're being paid by their employer is money the employer paid taxes on that the employer is giving to the employee to compensate them for the work they've accomplished, if they hadn't accomplished that work the employer wouldn't be giving them that money just like you wouldn't be giving tip to that person if they hadn't accomplished work for you.

You're arguing in favor of creating two classes of lower income people, those who pay taxes on all their income and those who pay taxes on part of their income only and in some if not most cases it's the majority of their income that would be tax free.

Hell, just the fact that their base salary is lower BECAUSE they get tips is proof that it's considered to be part of their income, if they were paid the same base salary as anyone else and everyone could get tips at the client's discretion you might have a very weak argument, but right now you simply don't.