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Tipping culture is out of control

Posted on 5/21/25 at 8:46 am
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
3149 posts
Posted on 5/21/25 at 8:46 am
Why are we trying to incentive/ subsidize it further?
I dont get it, if intent is to help low wage workers just increase standard deduction, EITC or expand the lowest tax brackets. What's the difference in taxing compensation paid by employer versus paid by customer?
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 5/21/25 at 8:48 am to
Look if the federal government wants to remove taxes, don't get in their way.
Posted by slinger1317
Northshore
Member since Sep 2005
7046 posts
Posted on 5/21/25 at 8:50 am to
Was in Spain last month and took several taxis. A couple of them were to/from the airport with bags. The drivers were courteous and unloaded all of the bags. By the time I reached in to my pocket for a few Euros, they were back in the car about to drive off. They weren't standing around waiting (demanding) a tip.

Also we had an 80 Euro bill at a restaurant and I tipped they staff 10 more. They were so excited, and I overheard one of them say it was the biggest tip they had in months.

Not that I am a big spender, but the tipping expectation in America is nuts. A teenager barely makes eye contact, no personality, punches a few buttons on an iPad, and then flips it around with a preloaded 20% tip on it. Ridiculous
Posted by beerJeep
Louisiana
Member since Nov 2016
38448 posts
Posted on 5/21/25 at 8:50 am to
Honestly, I think it might be more so people actually declare their tips so the govt can actually see how much some of them are making while double dipping into welfare programs because Uncle Sam thinks the poor waitress is making min wage and not what amounts to $20 an hr.

I know when I was in college none of the bartenders or waitresses I knew were declaring their real tip amount.
Posted by BigBinBR
Baton Rouge
Member since Mar 2023
10220 posts
Posted on 5/21/25 at 8:53 am to
quote:

I dont get it, if intent is to help low wage workers just increase standard deduction, EITC or expand the lowest tax brackets. What's the difference in taxing compensation paid by employer versus paid by customer?


t only affects their cash tips. Credit card tips will still be taxed. And FICA is is still to be taken out of the tips. If (and that's a big if) they claim their cash tips then they can deduct up to $25,000. But there will be an actual accounting of how many cash tips they receive and they will have to pay FICA on that amount.

Right now very few claim cash tips, so it really isn't going to change much.
Posted by rileytiger
Surfing The Gulf of America
Member since Feb 2007
4398 posts
Posted on 5/21/25 at 8:54 am to
I am all for it. The government does not need that money. Look what the democrats specifically spend it on. Personally I like to tip cash when at all possible so that it does not go to the fricking government.
Posted by Nosevens
Member since Apr 2019
19290 posts
Posted on 5/21/25 at 8:54 am to
What happened to those SS taxes becoming extinct?
Posted by rileytiger
Surfing The Gulf of America
Member since Feb 2007
4398 posts
Posted on 5/21/25 at 8:57 am to
quote:

Right now very few claim cash tips, so it really isn't going to change much.


They don't report cash tips bro. I waited tables before and I knew a guy who knew a guy that did not.

Posted by loogaroo
Welsh
Member since Dec 2005
42292 posts
Posted on 5/21/25 at 8:57 am to
quote:

Right now very few claim cash tips, so it really isn't going to change much.


Yup. This is a big nothing burger.

Not to mention, almost no one uses cash anymore.
This post was edited on 5/21/25 at 8:58 am
Posted by jrodLSUke
Premium
Member since Jan 2011
26262 posts
Posted on 5/21/25 at 8:57 am to
quote:

Look if the federal government wants to remove taxes, don't get in their way.

Exactly. The primary reason we can't get tax relief is because so few support lower taxes for others. But everyone supports lower taxes for themselves.
Posted by Fun Bunch
New Orleans
Member since May 2008
130241 posts
Posted on 5/21/25 at 8:57 am to
quote:

Tipping culture is out of control



You're about to see a lot of people claiming pretty much everything as tips.

I certainly would try to figure out a way if I could
Posted by BigBinBR
Baton Rouge
Member since Mar 2023
10220 posts
Posted on 5/21/25 at 8:59 am to
quote:

They don't report cash tips bro. I waited tables before and I knew a guy who knew a guy that did not.


Most don't. Some that do tip share do.
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 5/21/25 at 9:00 am to
quote:

You're about to see a lot of people claiming pretty much everything as tips.

I certainly would try to figure out a way if I could


I have not read the legislation passed by the senate but I highly suspect there is a cap on how much you can declare as tips.
Posted by Sam Quint
Member since Sep 2022
8864 posts
Posted on 5/21/25 at 9:04 am to
i'm glad that they are removing the taxes on tips. less taxes on income is always better.

that said, if i stand at the counter to order and you hand me a cup to go get my own drink and then i bus my own table afterwards, i'm not going to add 20% to my bill. it's nonsense.
Posted by 615tider
sidewalk in TN
Member since Oct 2012
3855 posts
Posted on 5/21/25 at 9:05 am to
quote:

A teenager barely makes eye contact, no personality, punches a few buttons on an iPad,


I've never worked in this field and I'm always curious.

If I have a server at a restaurant I tip them, and they keep it. But if you took my wife's coffee order, made my meatball sub or passed my order through a window, who exactly gets my tip?
Posted by Midget Death Squad
Meme Magic
Member since Oct 2008
28552 posts
Posted on 5/21/25 at 9:06 am to
quote:

Tipping culture is out of control



I upvoted for this



quote:

What's the difference in taxing compensation paid by employer versus paid by customer?


But I then DVd for this. Tipps are extra bonus handed off from one person to another outside of the official transaction of the business. Should I be paying taxes any time I throw a 20 to my son? Personal cash exchanges should be left alone.
Posted by La Place Mike
West Florida Republic
Member since Jan 2004
31393 posts
Posted on 5/21/25 at 9:08 am to
quote:

I know when I was in college none of the bartenders or waitresses I knew were declaring their real tip amount.


and they aren't going to start now. Hell, I wouldn't if I was them.
Posted by duckblind56
South of Ellick
Member since Sep 2023
5322 posts
Posted on 5/21/25 at 9:10 am to
quote:

What happened to those SS taxes becoming extinct?


This is the one I curious about. Would be a nice windfall for me is they did away with tax on my SS payments.
Posted by beaux duke
Member since Oct 2023
4911 posts
Posted on 5/21/25 at 9:11 am to
quote:

Look what the democrats specifically spend it on

holy blinders batman!
the gop spends like drunken sailors as well
grow up
Posted by GumboPot
Member since Mar 2009
140573 posts
Posted on 5/21/25 at 9:14 am to
quote:

I've never worked in this field and I'm always curious.



I worked as a bus boy, waiter and bartender through college in the late 80s and early 90s. We never declared tips. Management would say a least declare tips from credit cards but no one did. At that time most of the tips were from cash. You just put it in your pocket and spent it later.

Now, as I understand it most tips are on credit cards and tips are tracked on restaurant systems like Toast. So my understanding, not declaring tips is a lot more difficult today with all accounting systems in place.
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