There’s the problem. Removing taxes on tips makes it cheaper for employers to have their workers survive on tips instead of wages. Therefore they keep wages low. As a result, everyone subsidizes those employers’ profits, many of which are large chain ops. Instead of removing taxes on tips, we should remove the double standard low wage for tipped workers, and bring the wage floor up. Also make it easy to unionize and encourage it. Also do something about lowering the profits made by landlords who rent to small businesses. Also do something to lower the profits made by grocers who a lot of those small businesses buy inputs from. If we did all of that, we’d have well paying tipped jobs that could even be viable careers, as well as vibrant local economies that don’t ship most of the profits to a nameless building in some financial capital around the world. And tips would serve the same purpose they do in most of Europe - express gratitude for outstanding service, not a payment the employee depends on for making rent.
There’s the problem. Removing taxes on tips makes it cheaper for employers to have their workers survive on tips instead of wages. Therefore they keep wages low. As a result, everyone subsidizes those employers’ profits, many of which are large chain ops. Instead of removing taxes on tips, we should remove the double standard low wage for tipped workers, and bring the wage floor up. Also make it easy to unionize and encourage it. Also do something about lowering the profits made by landlords who rent to small businesses. Also do something to lower the profits made by grocers who a lot of those small businesses buy inputs from. If we did all of that, we’d have well paying tipped jobs that could even be viable careers, as well as vibrant local economies that don’t ship most of the profits to a nameless building in some financial capital around the world. And tips would serve the same purpose they do in most of Europe - express gratitude for outstanding service, not a payment the employee depends on for making rent.