this post was submitted on 21 May 2025
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United States | News & Politics
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I would suggest it's more like a gift, which is only taxed after an obscene amount.
Also, frankly I'd suggest not looking at it like it's unfair to give this to them and instead look at it more like, good for them, now how can we help hourly and salaried workers? I'm not going to punch down at service workers, myself.
There was talk of not taxing overtime (although the details of the plan are such garbage that it wouldn't actually help very many people). Something like that might help hourly workers similarly.
Salaried workers and workers like myself who are only nominally hourly ( the expectation is that I will book exactly 40 hours every week) are still left out, but I'm doing alright and would be happy to see others taken better care of first.
It's literally part of their wage. The restaurants pay them less than the normal minimum per hour because they are tipped employees.
I'm afraid I'm missing your point. Are you responding to the fact that it's more like a gift? It was an analogy not a perfect 1:1 mapping. This doesn't change anything about my response.
My point is is it's not a gift if it's basically socially required for customers to directly pay the workers their fair share of their wage (which decreases the amount of payroll taxes the employer owes)
Okay. Look, we could dig into the nuances, but likening it to a gift was only to invoke the precedent of not taxing cash gifts, but if you don't like the analogy then don't worry about the precedent.
Either way, the point is that service workers are paid shit, even with tips, and I'm not going to begrudge them some tax savings. I have frequently gone out of my way to tip in cash just to enable them to do so.