Should tips be taxed?

[Adabiviak]

What do you think? This isn't necessarily if you think tipping is itself good or bad, but whether or not you think tips should be taxed. I thought of this after reading another similar topic here.

For clarity, it's customary in much of the U.S. to give (certain) people in the service industry tips for good service (the better the service, the higher the tip - what's the current socially acceptable rate, 15%-20%?) Technically, tipping is optional, but I think people who don't tip are in the minority. Waiters/waitresses here pay taxes on these tips above and beyond their hourly base pay. There's even word on the street that the minimum wage for these employees may be lowered, since they make up for it in tips, but that's for another topic.

 

[Danimal]

I don't think tips should be taxed.

 

[Dog--]

Nothing should be taxed.

 

[Danimal]

Then how would the local council's build school's, hospital's, road's?

 

[Beerdude26]

Then how would the local council's build school's, hospital's, road's?

With mud and lungfish.

: OI U AINT GUNNA USE ME FOR NUTTIN, OR IM GOIN MELE UP YOUR ARSE

: Sorry, mr. lungfish. ;(

 

[Adabiviak]

I'm all for taxes myself, tips just seem like a weird gray area. If you work in an area with stingy customers, you take it in the shorts during tax season - you get taxed based on an assumed percentage whether you make that percentage or not. Doesn't that seem weird?

 

[kjac]

The whole income tax is a sham if you ask me, but tips are income and if everyone else has to pay taxes on income so should they.

IIRC, tips are taxed the same as anything else...it's just mostly in cash so there is no paper trail to prove anything.

 

[Dog--]

Then how would the local council's build school's, hospital's, road's?

They don't, silly!

 

[Ikerous]

Most people that do earn tips make a very high portion of their total sallery from tips. Tips deserve to be taxed just as much as other forms of income

 

[CptStern]

it's income therefore it should be taxed ..however you only declare a standard 10 - 25% when you file your taxes

 

[15357]

I'd rather give no tips and no tax. Seriously, why do you have to give tips? Tipping is the single most weirdest ritual that I've witnessed in the US.


I mean, if they didn't get any salaries, it'd be fine....

 

[Ikerous]

I'd rather give no tips and no tax. Seriously, why do you have to give tips? Tipping is the single most weirdest ritual that I've witnessed in the US.


I mean, if they didn't get any salaries, it'd be fine....

Apparently you haven't seen Reservoir Dogs

 

[15357]

I paid for the food that I've recieved! Inside it is also the service fee as well! Why do you have to pay extra?

 

[KagePrototype]

I paid for the food that I've recieved! Inside it is also the service fee as well! Why do you have to pay extra?

JUST BECAUSE SHUT UP

[edit} no, I don't think they should be taxed.

 

[15357]

JUST BECAUSE SHUT UP

[edit} no, I don't think they should be taxed.

;(

 

[CptStern]

I'd rather give no tips and no tax. Seriously, why do you have to give tips? Tipping is the single most weirdest ritual that I've witnessed in the US.


I mean, if they didn't get any salaries, it'd be fine....

the salary is at below the poverty line. Without tips no one would work in the service industry

 

[15357]

the salary is at below the poverty line. Without tips no one would work in the service industry

And the lack of service labor would have managers raise salaries to make service more appealing to workers, thus correcting the flaw.

 

[CptStern]

what managers? in many cases the manager is the owner. Corporate service industry is a different matter all together most have much higher salaries and are seldom tipped ..it's all relative to the type of service provided


and your scenario is flawed ..the owners benefit from this arrangement because they pay less in labour costs and there's an added incentive for employees to work harder. They have reason to keep it as it is

 

[15357]

what managers? in many cases the manager is the owner. Corporate service industry is a different matter all together most have much higher salaries and are seldom tipped ..it's all relative to the type of service provided


and your scenario is flawed ..the owners benefit from this arrangement because they pay less in labour costs and there's an added incentive for employees to work harder. They have reason to keep it as it is

Ok, ok, so if you don't tip, you're contributing to the destruction of the service industry?

Another thing I don't understand is the 20% rule. So, you pay $30 for food, but also an extra $6 for tipping? It's somewhat forced, they should just cahrge you $36 and give more money to the service worker. The cost of the food also iuncludes the service pay.

 

[Dog--]

Servers should work on comission.

 

[CptStern]

Ok, ok, so if you don't tip, you're contributing to the destruction of the service industry?

no, if you dont tip you run the risk of getting a hair/finger/rat dropping in your soup

Another thing I don't understand is the 20% rule. So, you pay $30 for food, but also an extra $6 for tipping? It's somewhat forced, they should just cahrge you $36 and give more money to the service worker. The cost of the food also iuncludes the service pay.

it's not 20% ..north america it's 15% ..and do you really have a problem with paying $6 for someone to serve you? you pay for the food, the quality of service is extra. Have you ever had a job?

 

[15357]

no, if you dont tip you run the risk of getting a hair/finger/rat dropping in your soup

Exactly! If you don't give them money, they spoil the food! What kind of 'service' is that?


Well, I'm used to paying for service and the food in just one payment thats listed on the menu.

I have a problem of paying $6 extra for a $32 meal, as the food itself shouldn't cost over $12 or so. The rest goes into service. Also, why do they choose the tip rate? I'll pay whatever that I feel is deserved, thank you very much, than a set rate.

 

[Raziaar]

Hello no they shouldn't be taxed. Alot of people make their living off tips. It's such a wildly fluctuating income source, it shouldn't be taxed.

 

[_Z_Ryuken]

Not unless the tipper is claiming it as charity so they can get a tax deduction.
But then, you can't tax charity, can you?

 

[63]

No, a tip is a gift.

 

[ComradeBadger]

Shouldn't be taxed (a lot of resturants include a service charge in their bills)

I don't believe that income tax is a terribly good concept. I don't like the idea that my labour is being taxed.. I'm not quite sure why..

 

[Geogaddi]

Having worked in a restaurant, I understand that tips are a waiter/waitress's livelyhood. No tax.

 

[Doppelgofer]

they do tax tips here in the uk.....they put me on a tax code that estimates 500 quid a year in tips which is bollocks so i rang them and told them to shove their tax raping up their own ass

IT WORKED no longer am i taxed on tips

 

[CyberPitz]

No, a tip is a gift.

That's what I Thought.

 

[Greatgat]

I usually tip unless if the service is just horrible. I consider it a customary part of what I'm paying and don't think about it. Except for when I went to Old Chicago's a couple weeks ago, and that lazy bitch didn't get a goddammed thing.

Hem.

Yeah, I would say tax them, but only if there is a way to keep track of what they make. Rounding it out just screws some people and favors others. It must be accurate first.

 

[Asus]

Because tips are optional and show customer appreciation toward the waiter/waitress for the service, I don't think it should be taxed.

 

[Greatgat]

It just seems so strange sometimes though. If you don't like someone in another business you go to their manager, make a huge scene, and hope that their lives are crushed forever through your efforts. If you don't like a server, you don't give them money. 0_o

 

[AtomicSpark]

I usually do 15%. I voted no on tipping. I also think its unreasonable when the restaurant automatically puts it in (especially when its around 20%). It's supposed to encourage good service not help increase their pay.

 

[KoreBolteR]

its weird. in the UK its not expected to give any tips. but in spain or U.S. its expected. like i heard if you dont give a tip after having a cab ride for example.. the taxi driver would want to rip your head off....

we dont pay tips here but the taxes are terrible

 

[Raziaar]

its weird. in the UK its not expected to give any tips. but in spain or U.S. its expected. like i heard if you dont give a tip after having a cab ride for example.. the taxi driver would want to rip your head off....

we dont pay tips here but the taxes are terrible

They festoon their cabs with the decapitated heads too. Either that or put them on heavy duty strings and drag them behind the vehicle like cans on a honeymoon car.

 

[KoreBolteR]

They festoon their cabs with the decapitated heads too. Either that or put them on heavy duty strings and drag them behind the vehicle like cans on a honeymoon car.

aaaaahaha!!!!!! in a chinese resteraunt. if u dont pay a tip they get the samurai guys out to chop your ass up. :naughty:

 

[ríomhaire]

It is income and therefor should be taxed. BTW I think tipping culture is stupid, why are you giving them extra money for an average service?

 

[MiccyNarc]

NO! N-O!
1000x NO!

 

[Evo]

The worst in when the menu is not clear about whether the service charge is included in the bill or not :/

 

[Atomic_Piggy]

It is income and therefor should be taxed. BTW I think tipping culture is stupid, why are you giving them extra money for an average service?

Too show your appreciation. Perhaps not the first time, but if they continue to do such a great service, its nice to slip a tenner into their hands. Just makes them feel pleased, and will make them want to continue said service. But I do agree it should be taxed.