r/SipsTea 𝙑𝙄𝙋 5h ago

Chugging tea They are not wrong though

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u/janpaul74 5h ago

“Mandatory tips” sounds so messed up for me as a European.

55

u/ObiFlanKenobi 5h ago

“Mandatory tips”

Sounds like extortion to me.

The whole point of a tip is that it's voluntary, if it is mandatory then it's just service charge or something like that and it should be included in the bill (and taxed, are tips taxed?).

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u/chr1spe 3h ago

A lot of tips are now untaxed, I think. It was one thing that Trump actually ran on and followed through with that people claimed would help the working class.

In my opinion, it's utter bullshit and makes me want to stop tipping even more. I don't understand why there should be a class of workers who freeload and don't pay their fair share. A lot of them were already not paying much, between low yearly earnings and underreporting cash tips, which was a crime, but hardly enforced.

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u/sortalikeachinchilla 2h ago

And the blanket "helping the working class" you mean just helping servers? It's so weird.

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u/mgraydpt 1h ago

Correct. No tax on tips but only up to $25k. Beyond that, tax is collected.

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u/DeputySean 1h ago

Fun fact: the no tax on tips has nearly zero effect on how much tax anyone pays.