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How I grow my X presence?

https://www.reddit.com/r/GrowthHacking/s/UEc8pAl61b
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What's the cost of the most expensive Super Bowl ad slot?

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What if you just did a startup instead?

https://alexaraki.substack.com/p/what-if-you-just-did-a-startup
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1•agliolioyyami•40m ago•0 comments
Open in hackernews

“No Tax on Tips” Includes Digital Creators, Too

https://www.hollywoodreporter.com/business/business-news/no-tax-on-tips-guidance-creators-trump-treasury-1236366513/
180•aspenmayer•4mo ago

Comments

aspenmayer•4mo ago
https://archive.is/8T9t0
jollyllama•4mo ago
$1 subscription, but "This content is only available for my top 1,000,000 fans" ranked by tips.
aspenmayer•4mo ago
Oooh, I like this. Reminds me of charity auctions.
zappb•4mo ago
That must be where Onlyfans was inspired to emulate the business model.
aspenmayer•4mo ago
More like chastity auctions, am I right?
pcthrowaway•4mo ago
The exemption doesn't apply to performance artists
nicce•4mo ago
I like the idea. How to implement in transparently in away you aren't always the 1,000,001 one?
kevin_thibedeau•4mo ago
Service provided by Patreon.
EliRivers•4mo ago
Okay, so if I had some employees working jobs that are part of this, could I give them a tip? Could I give them 25000 dollars of tax free tip.
aynyc•4mo ago
I think the tip here is defined as customer directly to employees. I'm sure an enterprising tax attorney can come up with ways to help your idea.
lotsofpulp•4mo ago
An employer is an employee’s customer.
ta1243•4mo ago
As a contractor my customer pays me $2k a day. Instead they could pay me $20 a day and $1800 a day in tips. Everyone wins.
aynyc•4mo ago
In 14 days, you hit the cap. In 75 days, you start to hit the phase out band.
exabrial•4mo ago
Love this. Step in the correct direction. Property Taxes are coming under fire next, and given their long racist history, it's about time.
crazygringo•4mo ago
Is it?

Why should tip income not be taxed but other income should be? How is that fair? What principle makes that just?

Are bartenders and servers more deserving of avoiding taxes than cooks and janitors, for some reason?

bdcravens•4mo ago
It's not about benefitting the employees, but the employers. It's meant to push back against livable wages.
alchemical_piss•4mo ago
The employers already had all kinds of bizarre tricks to keep tipped workers down.

My girlfriend works for a local chain restaurant. Some of the things she tells me about seem like they shouldn’t be legal (forcing everyone’s cash tips to be pooled with non tipped teenagers they don’t want to pay, for example. Pretty sure the company has had previous class actions against them. This was just a small local chain in a middle/upper middle class suburb.

I saw a post on Nextdoor the other day where another restaurant closed, laying off the workers without paying them for hours worked. The general consensus about how to get the money you worked for: you don’t. The state has no labor board and there was little option for recourse.

ndriscoll•4mo ago
Not that I'm a fan of tipping culture or the "creator" economy, but it seems like tips and donations to your favorite youtuber are obviously gifts to me? From irs.gov:

> You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return.

Which is obviously true for tips and donations. If it is a gift, then the giver owes taxes, and there is a $19k/year/recipient exclusion, so small gifts like this would always be exempt.

apercu•4mo ago
Agreed. Why aren’t capital gains taxed at a higher rate than income?

(Please don’t give me bullshit answers based on hundred year old economic theories just because you’re a wanna be libertarian)

ta1243•4mo ago
Because rich people earn more from capital gains than income?
opo•4mo ago
>Why aren’t capital gains taxed at a higher rate than income?

The federal capital gains rates are higher than the effective tax rates paid by a family making a median income, but I suspect you are asking why the capital gains rates are not higher than the highest marginal rates.

One issue is simply that capital gains tax rates generally don't account for inflation. If you build a business over a few decades and sell it, much of the increase in value will be simply due to inflation. Do you want to encourage long term investment, or make it so only financially illiterate people do long term investments?

exabrial•4mo ago
Progress, not perfection.
crazygringo•4mo ago
Towards what? No taxes at all? That's not desirable if you want things like public schools and rule of law.

And if you want more progressive taxation, then support more progressive taxation. Treating classes of workers differently is not a way to get to more equitable progressive taxation.

bdcravens•4mo ago
I suspect much of the attacks against property taxes aren't to right any historical wrongs, but is part of the attack against public education, since property taxes are a major source of funding.
briandear•4mo ago
No. It’s the idea that you’re renting your paid off home from the government. And the government gets to decide what it’s worth.
kelnos•4mo ago
No, you're renting the physical space -- a scarce part of the commons -- from your community.

(I do think property taxes should be a land-value tax and not include improvements you've built.)

happyopossum•4mo ago
> No, you're renting the physical space -- a scarce part of the commons -- from your community.

Property law in the US and most western democracies doesn’t remotely agree with that. Land is not a communal or solely government owned resource, and the govt doesn’t ‘rent’ it out.

brewdad•4mo ago
Stop paying your property taxes in the US and see how long it takes before the government forecloses. It is effectively rent under a different name. In exchange the government will protect your property ownership rights so that you don't go on vacation and find someone else now gets to claim your home since you weren't there to stop them.

Note: I think this is a good thing and that property taxes are vital to our local communities well-being.

xnx•4mo ago
What is you idea for how to collect revenue for government services? Import taxes?
exabrial•4mo ago
Ideally: nothing.
velcrovan•4mo ago
Places like that exist. You should try living there, see how you like the quality of life.
exabrial•4mo ago
I can't because people wont leave me alone.
eddythompson80•4mo ago
What do you mean? Who is stopping you from moving to Dubai?
gamblor956•4mo ago
I hear Somalia is a wonderful place to live if you've got a lot of money and your own army to defend it.
SnuffBox•4mo ago
I'm a libertarian but I know it is impossible for a society to exist without even just a few taxes.
arctics•4mo ago
"No Tax on Tips" meant for low income taxpayers so most of the major digital creators won't qualify.

Low income digital creators can deduct upto 25k in tips, so if their income from tips and other sources is below $150k a year, their taxable income will be 25k less.

cma•4mo ago
Median single income in the US was around $45,000 in 2024. $150K is not low income. It goes to $300K if filing jointly.

Major creators may still not get much since it's a power law distribution, but the tips thing is in no way limited to low income.

arctics•4mo ago
Generally correct, low income digital creators will benefit the most since "No Tax on Tips" will reduce their taxable income by 50% or more in comparison to someone who earns close to 150k which isn't a low income according to BLS as you pointed out.
cma•4mo ago
If you look at tax brackets plus the standard deduction lowering the bracket it affects, it will be a flat or regressive change in take home income amongst the cohort until at $90K or maybe a bit more, double median income, where you can start writing off against the 22% bracket. Assuming 50% tips.
NooneAtAll3•4mo ago
I have no measure of scale on 150k dollars a year in terms of creators scale...

I remember something like 2k$ youtube ad revenue for 1M views, so that's like 1M video every 4 days? or was it 2M views per 1k dollars, then it's 1M video every day?

ThrowawayTestr•4mo ago
$1 per 1000 views is a good estimate. Depends wildly on content.
inhumantsar•4mo ago
I've seen that same figure for YT ad revenue alone. sponsorships can range from $0.015-0.030 per video for channels with 1k to 50k subscribers.

at a biweekly cadence, they'd need ~6M views per video to hit $150k with ads alone. if you figure another $0.025 per view for sponsorships, then they would need 6M views per year or about 240K per video.

looking at Patreon stats, it seems reasonable to assume that a channel with 25K subscribers could pull in about 1K Patreon subs with effort. if each is paying $5/mo, then that would add another $60K/yr in revenue (though I imagine a lot of that would get eaten up by fees and extra costs.

randyrand•4mo ago
What's crazy is I just paid $450 to Google for 15k views of my youtube ad (views, not impressions).

So would be $30k for 1M ad views.

Of course a bit apples to oranges since not all youtube videos have mandatory ads, etc.

NooneAtAll3•4mo ago
you don't use adblock?
yunohn•4mo ago
Truly bizarre how this is playing out - was the digital creator carve out requested by the various right wing streamers that are part of Trumps’s core sycophant club? Doesn’t make any sense.
richwater•4mo ago
"No Tax On Tips" is so stupidly regressive and yet another addition to the complex tax law. Somehow we decided a waiter making 100k with tips needs more help than a stock worker at Walmart.
pessimizer•4mo ago
It isn't "no tax on tips" that's regressive, it's tips themselves. If tips are a gift, then they should be taxed as gifts are taxed. End tips and raise wages, and the taxes cease to be confusing or controversial.

For example, half of parents are transferring an average of $1,500/month, tax-free, to their adult children.* Why do they get to do this?

Or to take it to absurdity, why aren't my donations to charities taxed? What's the reason for the carveout? Should I instead donate earmarked cash to a charity that provides assistance to underpaid waitstaff?

[*] If you didn't hear that the other half are getting this, now you know: https://www.savings.com/insights/financial-support-for-adult...

kelnos•4mo ago
Well, this year I suppose it will be $1,583.33. That's just the gift tax exclusion ($19k this year) at work. I don't really see a problem with it. People should be able to give money to family members without penalty.

> End tips and raise wages, and the taxes cease to be confusing or controversial.

Some businesses have tried this, but often it doesn't work out. To make this financially feasible, it would require action at the federal and state levels to 1) eliminate different tipped vs. regular tax rates (some places have done this already), 2) and modify how payroll taxes work to even things out a bit. It sounds like "oh, no problem we'll just raise prices by 20% to cover the extra salaries". But no, that doesn't work, because businesses and individuals are responsible for payroll tax on non-tipped salaries.

And there's a collective action problem at play: take two identical restaurants. One follows the now-standard model of accepting tips, and ~20% is customary. Their identical competitor won't accept tips, pays their staff better, and charges 20% more for their food. Fun outcome: people get sticker shock at the second place and go to the first place instead, even though in the end they pay exactly the same amount. Human psychology is dumb, and restaurants know this, so they won't do this unless all their competitors are also required to do it. (This is also why in the US prices are advertised tax-excluded; pricing that includes tax is viewed as more expensive, even if the final charge is the same.)

twoodfin•4mo ago
For example, half of parents are transferring an average of $1,500/month, tax-free, to their adult children. Why do they get to do this?

For the same reason we have a generous gift tax exemption applicable to any gift from anyone to anyone: If you’re not receiving something of monetary value in return, what you’re providing isn’t “income” in the sense Congress has built income tax policy to capture.

That isn’t the case with tips for waitstaff.

happyopossum•4mo ago
That survey is stupid in this context, as it include everyone 18+ as an ‘adult child’, which includes a lot of college students. There’s nothing malicious about supporting your kid in college, nor would it make any sense to tax that.
tempestn•4mo ago
Nothing wrong with giving money to your kids in general. That income has already been taxed. If they were paying the kids for pretend work and taking a deduction for the higher-income parents, that'd be different.
naniwaduni•4mo ago
> As you might expect, Generation Z adults (ages 18-28) receive more financial support from their parents than their Millennial counterparts (ages 29-44),

I mean, yeah, something like a third the former are college students! What a trash fire of an article.

busymom0•4mo ago
I use "tipping" in my Hacker News app Hack. Basically users can tip an amount they pick. Would such "no tax on tips" apply to that too?
dlcarrier•4mo ago
If it's free for all users, and you don't provide any benefit to those "tipping", it's already an untaxed gift in the US, if no individual gifts more than $19,000, and even then, the gift giver would pay any taxes. Tips require a customer relationship to exist.
bitshiftfaced•4mo ago
I don't like the idea of even more expectations for tips, since we're already tip-fatigued. Despite that, I'd rather have less rules and taxes and have them actually enforced than have a situation where people pocket the cash portion of their tips untaxed anyway, which only punishes honest people.
RankingMember•4mo ago
It's pernicious. I've been to places that add "service charge" by default now to relieve tipping, then still give you the option to tip on top of that, which some people do because they think maybe the service charge isn't going to the server (in the places I've been to, it is). Tipping needs to die and it's frustrating to see it starting to proliferate in some European countries.
lotsofpulp•4mo ago
Just hit the zero tip option and move on with life. If a seller can’t advertise the price sufficient to sustain their business, that is their problem.
ryandrake•4mo ago
With a small amount of sadness, this is the conclusion I'm starting to end up with. Yes I think waitresses and service workers should make more money. But tipping in the US has become opaque, expanding everywhere, and the expectations around tipping seem to be getting ratcheted up constantly. A business is not viable if customers have to pay your employees separately. I'm close to hitting the nuclear button and just defaulting to zero.
KPGv2•4mo ago
My bright line rule is that I won't tip before service is rendered. If I'm asked before, I can't judge the service, and therefore making a tip decision is impossible.
csa•4mo ago
> I've been to places that add "service charge" by default now to relieve tipping, then still give you the option to tip on top of that, which some people do because they think maybe the service charge isn't going to the server

This may be the case some of the time, but from what I’ve seen and heard…

During COVID, everyone put out the tip jar. It turns out that some folks are willing to give in spots that are not “traditional” tipping situations.

Some folks just have extra money, and they are happy to share their wealth with others. This is doubly true in hard times.

Tips are one way to do that, and some folks do that with extra generosity.

I will also add that people seem to be more than happy to tip/give extremely generously to folks who “make their day”. Maybe it’s a great ride share driver, or a great massage therapist, or an online streamer, or whatever. Some people seem to be more than willing to tip folks who bring them joy.

All that said, if that’s not your style, just click skip and move on. Most people understand and won’t judge.

There are a handful of entitled people who will try to guilt people into typing in non-traditional tipping spots. Just don’t go back to those places if at all possible — those people suck.

zamadatix•4mo ago
The problem stems less from how it might have originated and more from what it results in.

Multiple times I've been travelling for dinner with coworkers and someone notes "oh, tip is already included here" (be it the group size, the way the place works normally, or whatever reason) and then half the table starts redoing the receipt because they were tricked into it. This example highlights it's not always about intent, work already has a set policy of how to tip (i.e. no generosity or etc involved), people are just getting plain tricked into doing something else instead. Regardless - it's successful in the growth of tips, so it spreads.

Similarly, "just click skip and move on" puts the friction in the wrong direction - especially if you're not alone. It's great that it can apply a lot of the time, but the problem is it has friction, sometimes strong, in certain scenarios - again, this friction is only weighted towards the growth of tips.

Lastly, the vast majority of people have some level of desire to be fair, even if they don't want to be generous. Any uncertainty which can be created in the tipping process ("am I supposed to tip here?", "is the tip in the service charge, if so how much goes to the person/how much were they expecting to get in total?", "is the recommended tip on the receipt more than I expected", and so on) tends to push people to tip more than their generosity alone would have inclined, and it's really quite unfair to say the solution is to just click skip and hope all will understand each time.

Unfortunately, there is pretty much nothing pushing in the opposite direction. Your options as an individual, or even sizable portion of society, are to shit on the wait staff's income about it in hopes they complain enough that management gives them a better salary (that'd take quite the movement). Everything about this side has the exact opposite incentive pressures as the above, and so whether particularly generous folks are a factor or not... there's really nothing that's going to get done about it for the typical person.

Maybe we can start some place in the middle of "being able to walk into a place and understand what the cost will be up front", such as including tax in the base prices of things, and it'll open more doors about tipping for the same consideration. Until then, we all are stuck with dealing with it.

EVa5I7bHFq9mnYK•4mo ago
"Your options as an individual, or even sizable portion of society, are to shit on the wait staff's income"

My primarily option is to multiply the estimated cost of going to the restaurant by 1.3 (tip+tax) and make my decision about going there based on that figure, not on published menu prices.

zamadatix•4mo ago
That's a good estimate for an individual visit as of today but is precisely the kind of thing that which has resulted in "normal" tips going from +.1 to +.15 to +.2 as the years go on (erring too low has more friction than erring too high, and if something else raises the amount traditionally tipped somewhere then "normal" for this will tend to adjust upwards in a large group).
EVa5I7bHFq9mnYK•4mo ago
Will owners realize at some point that the tips are really coming out of their pockets? If a guest has to pay $10 tip, she will buy $10 less food.
zamadatix•4mo ago
The staff wages (what tips offset) come out of their pocket either way, advertising the lower price is just a marketing technique.
KPGv2•4mo ago
The most frustrating thing has been the tip prompt that happens before service has been rendered. A tip is based on service. If you haven't received the service yet, the fuck is the tip meant to reflect? That you succeeded at breathing?
bee_rider•4mo ago
Why should we bother lying? It is just a bribe, to hopefully get better service.
rkomorn•4mo ago
I have a diametrically opposed take. I prefer tipping before.

It's my way of giving someone a little appreciation because they're (typically) doing a job I wouldn't want to do myself.

It's got virtually nothing to do with the quality of service I get. I always tip the same amount even when service is bad. There have only been maybe 3 exceptions in my nearly 3 decades of adult life.

I'm fortunate to be able to afford a little bit of generosity for service people, so I do it.

Edit: I should add that, in places where there's a customary tipping practice (eg: US restaurants), I tip above the customary amount no questions asked. The "generosity" is the amount above customary.

ChrisMarshallNY•4mo ago
In Japan, the service is amazing, and you don't tip.

If you leave money on the table, the server will chase you down, to give it back.

In the US, you get shit service, and they give you the stinkeye, if you don't tip at least 20%.

whatevermom•4mo ago
Happened to me once in Thailand, I was very surprised.

Truly USA is an overpriced country with the only good thing being that jobs are high paying… and that’s it.

I think the best thing in life is to have a remote job somehow + travel 50% of the time + stay w friends and family 50% of the time

KPGv2•4mo ago
> USA is an overpriced country

The USA is ranked sixth in purchasing power in the world, meaning we are definitionally underpriced.

The countries that have even more purchasing power are: Norway, Macau, Bermuda, Singapore, and Luxembourg.

https://www.worlddata.info/cost-of-living.php

MandieD•4mo ago
Let's see... two tiny countries that specialize in finance, a city-state that is the historic trade hub for the region, another that is the historic gambling hub for the region, and a low-population country that won the oil lottery and has been smart enough not to let its residents get high on their own supply, thus avoiding the worst of "the resource curse."
epolanski•4mo ago
Idk, as an European, coming to US 20/10 years ago was cheaper than traveling Europe.

Today? You're easily paying 3/400$ per night in Manhattan and other cities. Same is true for dining, museums, transport.

Everything is insanely expensive compared to what it was just few years ago.

Services are even more expensive.

epolanski•4mo ago
I was in Japan last month, tipped 4 times, once it ended up awkward with the waiter insisting me to take it back, the other 3 times they accepted it gladly and thanked.
ChrisMarshallNY•4mo ago
Times are a changin’…

I wouldn’t be surprised if they are being instructed to accept tips, in order to keep the customer happy.

epolanski•4mo ago
I think culture is changing and the waiters are increasingly immigrants.
ChrisMarshallNY•4mo ago
I don't know if that's true for Japan. The only non-Japanese folks I knew, over there, were Chinese, and they weren't exactly the types of folks that waited tables.
epolanski•4mo ago
In recent years Japan's immigrant population increased by 500 to 1000 people *every single day*.

Many of them end up in hospitality, especially in touristic places, due to different reasons, but very importantly, immigrants from south Asia generally speak English fluently, something Japanese people rarely do.

I've seen plenty of "japanese" restaurants in Shinjuku where not a single member of the staff was japanese.

Another place where you're gonna see plenty of immigrants are all convenience stores.

marzipanWhale•4mo ago
Why would you want to spread tipping culture?
epolanski•4mo ago
I don't tip for the sake of tipping, I do it when I receive a more than excellent job.
renehsz•4mo ago
"When in Rome, do as the Romans do."
usui•4mo ago
Yes this is so cringe, but it makes me kind of laugh. Of all the things the Western world historically imposed on Asia, it makes me laugh this is what made me feel is most cringeworthy as of recent.

Please keep your tip customs out of our culture. Next time just say thank you several times to show you appreciate them.

Rebelgecko•4mo ago
I guess the good news is now we can ask the server their marginal tax rate and reduce our tips accordingly
colechristensen•4mo ago
I do like the idea of people doing stuff for free for the public benefit and asking quietly for tips on topic with the article re: "digital creators".
edoceo•4mo ago
Flattr - are they still around?

Edit: closed in 2023 after 14 years.

viraptor•4mo ago
> since we're already tip-fatigued

Bluetti hit the "are you actually fucking serious?" level for me with the tips. They ask you for a % tip when you order online from them. No employee contact, no consultation. I just added a $2k item to the basket, tried to pay and got an invitation to tip extra.

thayne•4mo ago
Yeah, this is going to incentivize businesses to try and make as much of their employees' pay come from tips, which means consumers will be expected to pay more tips, which is the opposite direction I want it to go.
hypeatei•4mo ago
"no tax on tips" was a pandering move to the mostly financially-illiterate populace that still don't understand progressive tax systems. Singling out certain types of income makes no sense and is very unfair. I wouldn't be surprised if this actually ends up resulting in less tip income over the long term due to people going "wait my income is taxed but theirs isn't, why should I tip as much?"
nickthegreek•4mo ago
Don't worry, no tax on tips actually phases out relatively quickly (2028) while the tax cuts enacted for the 1% are there to stay.

edit: fixed year typo

koolba•4mo ago
Extending the 2017 tax policies, specifically continuing the capping of SALT deductions, leads to higher taxes for high income earners. That deduction was worth $100K to a $1M/year income in a 10% State income tax state earner. Even more when you add in property taxes.

If they had not been extended the taxes for those high earners would have dropped for 2025 and beyond.

The bottom 50% pay no taxes and the top 1% still pay 40+% of federal taxes.

ceejayoz•4mo ago
> the top 1% still pay 40+% of federal taxes

No. They pay 40% of Federal income tax, specifically.

https://nymag.com/intelligencer/article/fact-check-richest-1...

> The bottom 50% pay no taxes

Same mistake here. They pay plenty of payroll etc. tax.

loeg•4mo ago
The numbers from your link are:

The top 1% pays 24% of Federal taxes, and the bottom 50% pays somewhere between 7% (bottom 40%) and 16% (bottom 60%).

dmoy•4mo ago
Yes, that sounds about correct. It's a lot more than "bottom 50% pay no tax".

Also I'm unclear if that source includes only the "employee half" of the 15% FICA.

NuclearPM•4mo ago
That’s a crystal clear sign that the top 1% have way too much money.
estearum•4mo ago
Yeah this argument is so silly: "the top 1% pay 60% of income tax" oh okay, so as they get closer and closer to escape velocity from the rest of us, that number will climb to 1% paying 70%, then 80%, then 90%, so your argument to tax them gets weaker while the functional need to tax them gets stronger.

Brilliant!

NuclearPM•4mo ago
Thank you for understanding what I was trying to say. :)
throwawaymaths•4mo ago
no, employees do not pay payroll tax, employers do.
Spivak•4mo ago
And stores pay sales tax.

> By law, some payroll taxes are the responsibility of the employee and others fall on the employer, but almost all economists agree that the true economic incidence of a payroll tax is unaffected by this distinction, and falls largely or entirely on workers in the form of lower wages.

Who is charged the tax and who pays it are different things.

gamblor956•4mo ago
In some states, the stores are the ones that owe the "sales" tax (which in these states are actually excise taxes that the business can pass through to the customer).

The "tax" the customer pays in those states is the "pass thru" charge. To make things fun, Hawaii imposes the excise tax (on the business) recursively on any tax charges passed thru to the customer.

ceejayoz•4mo ago
I assure you we do.

https://en.wikipedia.org/wiki/Federal_Insurance_Contribution...

> The Federal Insurance Contributions Act (FICA /ˈfaɪkə/) is a United States federal payroll (or employment) tax payable by both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

7.65% of your check until you hit the cap. Employer pays a similar amount.

quickthrowman•4mo ago
Additionally, removing the cap on FICA contributions would likely push Social Security back into long-term solvency, but that would be far too much of a burden on the top 1% of wage earners so it’ll never happen.
scarface_74•4mo ago
To be precise, social security maxes out at around the income of the 93 percentile of income

https://dqydj.com/income-percentile-calculator/

But that would also mean uncapping the maximum amount you are eligible for for social security.

kgermino•4mo ago
It wouldn’t _have_ to, that’s a political decision not a mathematical requirement.

But, even if you did it would still help tremendously and possibly still be sufficient. There’s diminishing returns where lower income people get a higher percentage of their income as a social security benefit. As long as that policy is maintained the ultra high wage earners would be contributing far in excess of the benefit they get paid back out

scarface_74•4mo ago
In that case it’s no longer about social security it’s just a 12.4% marginal tax increase (employer + employee).
ceejayoz•4mo ago
> But that would also mean uncapping the maximum amount you are eligible for for social security.

No? Why would it mean that?

scarface_74•4mo ago
Currently, the amount you put in social security over the years determines how much you get when you retire. Why would anyone support a system that is suppose to be to help you in retirement where you are paying an unlimited amount into a fund and then capping how much you get out?
ceejayoz•4mo ago
> Currently, the amount you put in social security over the years determines how much you get when you retire.

Currently, there's also a maximum amount of benefits. That could easily stay.

> Why would anyone support a system that is suppose to be to help you in retirement where you are paying an unlimited amount into a fund and then capping how much you get out?

Same reason people pay school taxes if they don't have kids. Because we live in a society, and we tax people to fund things like this.

scarface_74•4mo ago
So you want to raise the marginal tax rate by 12.4% (employee + employer) without the person getting any benefit?

> Same reason people pay school taxes if they don't have kids. Because we live in a society, and we tax people to fund things like this.

And educated children, police, roads, etc benefit society and we were all at one point kids who could take advantage of public education, I don’t even have a problem paying more in taxes for universal healthcare that will reduce my + employer expenses on my healthcare.

But paying an extra 12.4% for what was suppose to be a retirement account that I don’t get any benefit from and reduces the amount I can save toward my own retirement is a bridge too far. Since 2018, I’ve been slightly above the increasing social security maximum. So it’s not that I’m one of the 1%.

rkomorn•4mo ago
Pet peeve/nit, but social security is not a retirement account.

Our taxes are a way of funding current retirees' (and other SS recipients') benefits, not a way of funding our own individual future benefits.

The fact that paying more in increases our future benefit doesn't make it a retirement account.

scarface_74•4mo ago
It very much is. The more you put in the more you get out. From a financial accounting standpoint, the money you put in goes in a “trust fund” that is constantly borrowed against. It was never suppose to be that way. Social Security taxes is not allocated for current retirees. It just goes in the general budget.
rkomorn•4mo ago
It is not a personal account where what you put in is yours. You don't have a balance that runs down to zero if you live too long.

"The more you put in the more you get out" is only because that is how your benefit is computed. It is not because there is a certain amount of your money somewhere.

Related: your benefit is calculated on your 35 highest income years, not the total sum of your contributions. [1]

Other thing worth noting: the AARP page about SS myths that literally says: "Myth #7: Social Security is like a retirement savings account." [2]

The trust funds for social security are used to pay for everyone's current benefits and the rest is invested [3]. The fact that it's supposed to remain solvent still doesn't make it a retirement account.

Yes: it feels like a retirement account because you pay in now and (hopefully) cash out later. But that is only a feeling.

And finally, I started my GP comment with "nit" as one of my first three words because I understand the distinction is somewhat hair-splitty, but it is still real and relevant to how we think about it.

1- https://www.forbes.com/sites/ebauer/2020/11/11/social-securi...

2- https://www.aarp.org/social-security/myths-misconceptions-ex...

3- https://www.ssa.gov/oact/progdata/describeoasi.html

quickthrowman•4mo ago
Because they likely already have more than enough and have been blessed by society/civilization as a top earner who will enjoy a comfortable retirement without any social security, and they’ll be better off if other people that didn’t earn and save as much are able to retire without being destitute in old age.

That perspective could be someone who is willing to say “You know what, I already have enough, let’s make sure the floor is raised for everyone.” Someone who believes more in individualism would probably disagree with that perspective.

scarface_74•4mo ago
You think someone making just over $175K (the current social security taxable maximum amount) is able to save enough to ensure a comfortable retirement?
quickthrowman•4mo ago
I would hope so, I make half that right now and will be able to save enough for a comfortable retirement but I save almost half of my income.
scarface_74•4mo ago
I love when people say that “I live in East MiddleOfNowhere Nebraska with no kids and I can save half for my retirement”.
Groxx•4mo ago
this is roughly equivalent to saying "we don't pay import tariffs, importers do".

it may be technically correct, but it still impacts individual costs/income at pretty much exactly the same amount, because the costs are just passed down the chain.

triceratops•4mo ago
> The bottom 50% pay no taxes and the top 1% still pay 40+% of federal taxes.

This tells us nothing unless we know how their relative income shares. If the bottom 50% earns only 20% of all income (just an example) this is quite fair. If they earn 60%, it's unfair.

The number of people who just trot out this statistic without context is quite tiresome.

And of course everyone pays sales tax, property tax (even if they're a renter), payroll tax and so on.

gruez•4mo ago
See this chart: https://media4.manhattan-institute.org/wp-content/uploads/co...
triceratops•4mo ago
That doesn't answer the question I posed. First off it conflates "high-earning" with "wealthy". Plenty of early career doctors are high earners but have a negative net worth. They pay more taxes than someone with millions in net worth but lower "income".

Secondly, just because the median earner pays a 2% average income tax rate while the top 1% pays on average 21% doesn't tell us anything about its fairness. It ignores income share.

verteu•4mo ago
True, though it's irksome how the chart conflates "Rich" with "High taxable income."

These are not the same, which is exactly the problem!

eg: The #1 most wealthy American is Larry Ellison, whose net worth increased $89B today with zero tax implications.

twoodfin•4mo ago
Capital gains absolutely have tax implications. Just like my house rising $100K in (unrealized) value over a year.
cherrycherry98•4mo ago
Capital gains receive favorable treatment under US tax code but are also a realized gain by definition. That is you actually have to sell the asset and are taxed based on any profit earned.

An increase in the estimates value of your real estate holdings does not trigger a capital gain. Your municipality, however, may use it as an excuse to increase their assessment of the value of your property, which is used to calculate the tax they charge.

triceratops•4mo ago
So you admit that many people do pay unrealized gains taxes on their largest asset (their house)?
cherrycherry98•4mo ago
Yeah it functions like a wealth tax, but the claim was that it was a capital gains tax, which it isn't.
tracker1•4mo ago
What do you think should happen to you if your house is more valuable in a year than the year before, even if you aren't selling or otherwise leaving that house?
happyopossum•4mo ago
This varies wildly depending state you live in - some states adjust property taxes for current value, some don’t (or do but with severe limits)
tracker1•4mo ago
But do they do income-like taxes on the added value? This seems to be what people (GGP) are wanting from the increase in stock values, ie, unrealized capital gains.. which is frankly terrifying.
ambicapter•4mo ago
They increase property taxes, so yeah, you're getting taxed on a capital gain that you haven't realized yet (and won't until you...sell your house).
tracker1•4mo ago
What do you think should happen to people's retirement accounts each year then?
triceratops•4mo ago
Nothing. Retirement accounts are tax deferred or tax free. What a weird question to ask.
tracker1•4mo ago
Well, if you want to tax the stocks that the wealthy own.. why wouldn't you want to tax the stocks that many regular people own? Where do you draw the line between the two?
triceratops•4mo ago
Wealthy people's stock in retirement accounts would also not be taxed. This can be considerable: Peter Thiel's Facebook investment was made in an IRA.

I imagine there'd be some net worth number, excluding retirement accounts, that policy wonks could work up. You draw the line between "wealthy" and "regular" there. Or, more likely, several lines because there would be wealth brackets similar to income brackets. Without that it would be a regressive tax.

tracker1•4mo ago
Why not just tax when someone SELLS the stock, or leverages it for a loan instead? You know, when they actually use it?

I'm actually against property taxes, or any kind of tax where you risk losing property just because you managed to live another year.

triceratops•4mo ago
I don't disagree with that. But it's a much bigger discussion. Abolishing all property taxes means city and county finances need fundamental re-working.
triceratops•4mo ago
I know what does happen. Property taxes go up. A wealth tax by another name.
verteu•4mo ago
Probably nothing.

It seems quite reasonable that unrealized capital gains would be treated differently for "a primary residence" vs "a multi-billion-dollar stake in a company controlled by the owner."

A far better question is: Why does my company pay me in cash (40% marginal tax rate) instead of "equity shares of 'special partnership units' representing the value added by verteu's labor" (20% capital gains tax)?

Or: "How did Mitt Romney's Roth IRA grow to $100,000,000 with a $7,000 annual contribution limit?"

cherrycherry98•4mo ago
His net worth increased due to asset appreciation. Nobody physically transferred him any money and it can fall back down tomorrow. Should he get a refund if Oracle stock tanks?
triceratops•4mo ago
He pays less next year because Oracle stock is worth less. Just like property taxes on people's houses.

The math on taxing unrealized gains or losses doesn't work out for the reasons you pointed out. Property taxes, on the other hand, have been working for a long time.

cherrycherry98•4mo ago
> He pays less next year because Oracle stock is worth less. Just like property taxes on people's houses.

Does he get a refund if he loses money or is it just tax if you win, tax if you lose, tax if it doesn't move?

I'll give a few feelings about property taxes. They are known up front when the purchase is made. There's an expectation that they remain reasonably consistent year over year. In that way they can be consistently planned for, enough that it's seen as more of a maintenance expense for upkeep of local services rather than a wealth tax. If my neighbor sells their comparable property for double what they paid for it a few short years I don't expect my tax bill to have a massive jump. In my experience the city's assessed values tend to lag the true market value pretty significantly. The goal appears to use the assessed value as a means to have some graduated component to the property tax. Being a local tax, any significant jumps are seem to be avoided by design, lest it trigger angry residents showing up at town hall meetings.

With a wealth tax it can be highly variable year to year and out of one's control. If stocks go way up you're on hook for paying those taxes. Especially if you're Larry Ellison with a controlling stake in Oracle, you could find yourself in the situation of having to liquidate assets to pay taxes, thereby reducing your control of your own company.

My main objection to a wealth tax is many of its proponents see it as a means of reducing inequality and "leveling the playing field". I find these positions to come from a place of envy and reject them of those grounds. Many arguing in favor also assume that federal confiscation of wealth inherently benefits the public, as if its some benevolent charity. The reality is more mixed. There is seemingly no limit to politicians' ability squander money on nice sounding projects that give them good headlines while enriching cronies and delivering questionable actual value. It's nice to imagine that all that money is going to roads, bridges, schools, and research, but a whole lot is also going to spying on the populace, subverting foreign governments, and blowing people up.

triceratops•4mo ago
> With a wealth tax it can be highly variable year to year and out of one's control.

It could be designed to be closer to property tax.

> you could find yourself in the situation of having to liquidate assets to pay taxes

Maybe. There are many other ways: the stock pays enough in dividends to cover the tax, the owner has other sources of income, the owner borrows against the stock to pay tax, and so on. In many dual-class structures the privileged class stock becomes common stock when sold so some founders could maintain control even after selling.

Private companies are trickier but still manageable. I don't want to turn this into a long post though.

> many of its proponents see it as a means of reducing inequality and "leveling the playing field".

I see it as a way to reduce income taxes. Welfare states are currently funded by income and payroll taxes aka taxes on labor. For the math to work out you need higher and higher tax rates or more and more workers. And you're fighting an uphill battle because improving productivity constantly reduces the need for workers.

Instead let improved productivity pay for the welfare state. Stop penalizing people for working by taxing them more.

verteu•4mo ago
> Should he get a refund if Oracle stock tanks?

Presumably it would function the same way as realized capital gains taxes (no refund on tax already paid)?

tracker1•4mo ago
Well, other than it's impossible for the bottom 50% of income earners to ever earn 60% of the income without weird communism in place...
mdorazio•4mo ago
Varies by year, but top 1% share of income is around 21% right now in the US:

https://ourworldindata.org/grapher/income-share-top-1-before...

i.e. the US tax system is still fairly progressive despite what many people think.

loeg•4mo ago
> That deduction was worth $100K to a $1M/year income in a 10% State income tax state earner.

What? Income deductions are only worth the marginal tax rate on that income -- ~40% on $100k of income deducted is worth ~$40k. (With the $10k SALT cap, he can still deduct $10k, worth about $4k.) The top bracket being reduced from 40% to 37%, and starting at a higher income threshold, likely saved the same high earner more than $36k.

happyopossum•4mo ago
You’re over mathing here - GP is simply saying that if someone lives in a 10% income tax state and makes 1m, they can deduct $100k from their income (presumably because it was never really theirs).
loeg•4mo ago
They specifically make the claim that the TCJA is a net negative for this hypothetical $1M earner in a 10% income tax state, and I don't think that's true.
triceratops•4mo ago
2008?
mvdtnz•4mo ago
Non-tip workers won't remember (or even notice) the phase-out. The damage is done and I agree it will incentivise people to tip less even after the phase-out.
immibis•4mo ago
> Singling out certain types of income makes no sense

Actually it makes sense based on what income can be reliably taxed. Impossible to verify how much that person actually tipped, so better write $0 on the tax form. As someone else wrote, that only punishes honest people.

bertil•4mo ago
> a pandering move to the mostly financially-illiterate populace

I immediately assumed it was a clear overture to people who are very financially literate and who were expecting within minutes an email from their tax lawyer to explain how payment for their activity happen to quality for a very loose definition of tips. At least the part that wasn’t already tax-free thanks to international montages, blind trusts and creative reporting.

AuryGlenz•4mo ago
Eh.

People already vastly underreport their tips. This just codifies it in to law. I’m not saying it’s right but I also doubt it’s hitting the IRS’s coffers especially hard.

Logically, it would make sense to me to make it dependent on how much of your income comes from tips. It doesn’t really make sense that wait staff shouldn’t pay taxes on their tips, as it’s basically just their income but paid by third parties. When I was doing wedding photography and someone gave me a tip on top of my normal fee, that feels more like a gift than my income. It was fairly rare and was nowhere near the majority of my income. That, logically, shouldn’t be tipped as long as other gifts aren’t.

But that would be complicated, so here we are.

hshdhdhj4444•4mo ago
No tax on tips is the kind of policy you’d come up with if you were creating a caricature of the far left.

And yet, in today’s America that’s the major economic policy of the leader of the Republican Party.

hypeatei•4mo ago
Well, it's a very populist move and the extremes of either party will go down that road to get votes. Far right parties are generally for social programs as long as the wrong people don't get them.
dlcarrier•4mo ago
It has broad bipartisan support and was one of very few policy changes promised by the Harris Walz campaign.

Conservatives like it, because it is effectively a de minimus exemption on taxes, simplifying the tax collection process, and liberals like it because it results in more progressive taxes, with tip earners overrepresented amongst low-income earners.

standardUser•4mo ago
It does nothing to simplify the tax code, and it opens up a universe of loopholes. The concept may have some merit, but the implementation is sloppy and lazy.
ryandrake•4mo ago
I think ultimately very few people really care about simplifying the tax code. The cost of a complex tax code is the $19.95-$200 cost of preparing your taxes, which everyone would gladly eat if it meant they could take advantage of tax deductions on pages 1,455, 19,210 and 245,908 of the tax code totaling > the cost of tax prep.
dlcarrier•4mo ago
Simplifies tax collection process ≠ Simplifies tax code

A few lines of tax code means millions of people don't have to worry about unpredictable withholdings due to significant changes in tips from day to day, month to month, and year to year.

Also, what's sloppy about it? It's just a deduction for up to a maximum amount from tips, for a specified list of occupations, with the maximum decreasing as income increases above a specified level. That's pretty simple, as far as tax code goes. What do you think would be a less sloppy way of implementing it?

ars•4mo ago
> of the leader of the Republican Party.

You have too much partisanship on your mind.

Harris (Democratic party leader) endorsed it: https://www.cnn.com/2024/08/12/politics/taxes-on-tips-elimin...

tzs•4mo ago
That may have been a strategic endorsement, to keep it from becoming a campaign issue.
laidoffamazon•4mo ago
Correct, she stole a bad idea
mhb•4mo ago
> if you were creating a caricature of the far left

Yes. And a big round of applause to welcome Mr. Zohran Mamdani.

crazygringo•4mo ago
Mamdani has not supported no-tax-on-tips.
mhb•4mo ago
And? He's not a caricature of the far left?
Dylan16807•4mo ago
Are you reacting purely to the phrase "caricature of the far left" in a way that ignores and even goes against the rest of the post, to bring up a guy you don't like and make no other commentary?

If I'm missing something help me out.

nitwit005•4mo ago
Two decades back, if you told me someone wanted to dramatically raise tariffs, and have the government take a stake in Intel, I'd have assumed this was someone who labeled themselves a Socialist.

After all, the government taking ownership of industries matches common definitions of Socialism.

quickthrowman•4mo ago
In contrast, tariffs and the government taking stakes in private companies reminds me of fascist Italy under Mussolini: https://www.historyfromonestudenttoanother.com/a-level/a-lev...

> Charter of Labour, 1927

> He recognised private enterprises as the most efficient, gaining him support from rich industrialists.

> The charter also stated that the state could take control of, manage or encourage enterprises that were considered inefficient.

rayiner•4mo ago
History didn’t begin in 1980. Tariffs and economic interventionism were founding planks of the Lincoln GOP: https://mises.org/mises-daily/awful-truth-about-republicans
Terr_•4mo ago
Well, the "Lincoln GOP" was also generally in favor of tearing down and burning confederate flags, so I think it makes more sense to compare things over a shorter time-periods like "in living memory."

Parent poster's explicit "two decades back" scale is entirely reasonable for the phenomenon they are pointing out.

rayiner•4mo ago
Lincoln was concerned about national unity foremost, and allowing the south to preserve its identity facilitated that after the war. It may have been the most successful reconciliation after a bitter civil war ever in history. Regardless, the economic forces shaping the nation have been shifting around but ever present since the founding. We were fighting about a central bank in 1789 and are still fighting about it today!
Yeul•4mo ago
The Intel story is hilarious considering the whining about Huawei a few years ago.

American hypocrisy never fails.

Woodi•4mo ago
One or two events do not change big system.

And US still needs to protect x86/MS as best NSA source :) There is even "intel" right in the name ! ;) Also business and best and cheap compute cpus. I guess they need a bit of help until some patents go off...

And do not forget foundry with "photonics" tech cooperating with military...

Lack of wild and dumb capitalism is not automatically socialism.

And belive me: socialism is the TRASH - replacing private ownership destroy value and sensibility of any action.

mhalle•4mo ago
Perhaps.

But it also expands the idea that the customer/buyer has financial power over the server by encouraging a tipping culture.

Donald Trump and his sons have repeatedly said that don't pay on contracts when they view the work is poorly done or insufficient, in response to claims of non-payment.

Encouraging tipping makes such "payment discretion" easier.

Podrod•4mo ago
In what bizzaro world would a far left party want to support the weird American fixation on relying on tipping to ensure a worker makes a decent living?

A actual far left policy would be a collectivised or cooperative workplaces that don't rely on tips to subsidies salaries.

wavemode•4mo ago
Parent commenter doesn't mean far left globally, but rather far left in America, which is actually centrist globally.
Luker88•4mo ago
Does the opposite movement exist?

Like "No Tips".

Pay your employees, pay your taxes.

No nonsense on dividing tips between people that I did not interact with, minimum tipping, or with automated machines.

Tipping also means that if I want to know how much I'll spend in your restaurant I will have to decide how much I tip even before I walk in.

This is all just tax evasion with extra steps, enabling exploiting of people that have less contractual power.

downrightmike•4mo ago
Sort of, but they chose to outsource instead of paying people/taxes
codedokode•4mo ago
> Does the opposite movement exist?

Japan?

bertil•4mo ago
Most of the world, really.

Japanese people are offended, so don’t do it there. People in other places tend to be flattered, so you can, occasionally. But the idea that you should pay your employees a living wage has been a well established principle since the 19th century.

jedberg•4mo ago
I've found outside the USA they tend to be confused when I tip. Or they will look me right in the eyes and say, "American, yes?".
kccqzy•4mo ago
I've found that when I go to restaurants outside the U.S. without speaking their native tongue they often ask where I'm from. Answering that you are from the U.S. will make the servers overly friendly and then they will ask for a tip.
mvdtnz•4mo ago
You expect us to tip when we visit your country, why can't we expect you to tip when you visit ours?
wizhi•4mo ago
Servers taking advantage of the tendency for Americans to tip shouldn't be conflated with anyone else traveling to the US.
tastyfreeze•4mo ago
I used to try practicing no tips. I live in a state with no different tipping wage. To me that makes the argument of "they get paid nothing" impotent. But, culturally, people will perceive you as a prick for not tipping at restaurants. It's not fair and I don't like it but, that is the culture that has spread from tipping wage states.

Now that I have given up on that battle I do scale my tip for how good the service is.

NegativeK•4mo ago
Is it a state where the minimum wage is no different? Or that they require traditionally tipped wages to actually be paid fairly?
brewdad•4mo ago
All employees receive minimum wage regardless of whether they receive tips. Tips are not there to backfill the required wages nor can they be used for that. So this isn't the $2.13 min wage that must get to $7.25 when tips are added in.

In my area, the min wage is somewhere around $15/hr. Anything less than 20% tip on top of that $15/hr is considered stingy. The restaurants that do a service charge instead of tipping add 22% and sometimes a 4% fee to pay for employee health insurance.

Anymore, we really only dine out for special occasions or a monthly visit to our favorite spot.

tastyfreeze•4mo ago
As a statement of how things should be, I agree. But it is not true in most states. When servers are paid the same as the minimum wage there is no separate tipped wage. The words you are looking for in a particular state's labor laws are "tipped wage" or "tip credit". There are many states where the employer can count the expected tips as part of the wage they pay. So, they pay the employee something like $2.13.

https://www.dol.gov/agencies/whd/state/minimum-wage/tipped

what•4mo ago
That’s the same thing.
NegativeK•4mo ago
The minimum wage is often not a fair wage.

If tipped employees are just earning that standard minimum wage and nobody tips them, then they just get the minimum wage. I can see situations where they'd be pretty mad -- there are a lot of restaurants where tipped employees make more than the standard minimum wage.

All of that said, I believe that tipping is horseshit and should go away. But I can't protest it by refusing to tip unless I want to punish the wrong people.

tredre3•4mo ago
> No nonsense on dividing tips between people that I did not interact with

It is true that in some contexts, a good waiter elevates the experience. But in most restaurants the waiter adds nothing to my experience. If anything they're a hindrance. So I'm very much in favor of forced tip sharing with the people who actually made the food I enjoyed.

ukoki•4mo ago
> If anything they're a hindrance.

Absolutely. As a brit used to waiters and waitresses in the UK and Europe generally leaving me alone until I ask for something, I find the constant fawning interruptions from American service staff cringe-inducing.

A refreshing aspect of US culture is the lack of a historical class system and associated cultural baggage that we have in the UK. So I find it so strange that once you step into a restaurant you are forced into this weird servant/master cosplay where you dictate the server's livelihood based on how you happen to be feeling that day and the resulting whim of your pen writing on the tip line.

skeezyboy•4mo ago
> It is true that in some contexts, a good waiter elevates the experience the food is already marked up at least 300%, take the tip out of that
throw0101a•4mo ago
PSA: the "No Tax On Tips" provision expires:

> New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.

* https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-...

There's also a maximum of $25k/year (~$2k/mo).

jagged-chisel•4mo ago
Is that maximum $25k in tips, or in total income that includes tips?
rayiner•4mo ago
Tips. The AGI phaseout starts at 150k (300 married).
fn-mote•4mo ago
300k before your tips start to become taxable??

What in the world is driving this very high ceiling?

rayiner•4mo ago
That’s a typical phase-out threshold for dedications.
cebert•4mo ago
300k isn’t what it used to be these days with inflation and cost of living. If you have kids and a house, things get expensive quickly.
vasco•4mo ago
Get real, look at some statistics, that's more than 3x median
CalRobert•4mo ago
Yes, it was Ferrari money and now it’s just Porsche money. Poor things.
hiatus•4mo ago
This is the problem when talking about class warfare. We are eating our own. Someone making $300k a year is closer to the median than someone making $5 million a year. Losing ~30% of your spending power since 2008 might not matter if you're a billionaire but for most working professionals it has an impact.
CalRobert•4mo ago
You make a good point - lumping people who make 500k a year with those making 5 million (or 50 million) a year is bad policy.

It's still a very good income, though.

ashdksnndck•4mo ago
Rich people are more likely to pay accountants to come up with complicated ways to exploit the tax system. If the top 5% had access to this loophole, you’d probably end up with some crazy outcome like 80% of money saved from this deduction goes to the top 5% of earners. And that would make the provision more expensive to include in tax legislation (trading off against other things like the headline tax rate). Since “no tax on tips” was a campaign promise, they probably wanted to keep the promise while setting limits to make it easier to fit into the rest of the bill.
tdeck•4mo ago
They won't pay accountants, they'll tip them!
jagged-chisel•4mo ago
Only if the accountant’s accountant recommends receiving tips
Frieren•4mo ago
Kids of rich people now can exploit this loophole. They can get up to 300k from some fake job and do not pay any taxes on the "tips" part of it. Each month the tips part is going, oh surprise, going to be the maximum allowed by law.
pests•4mo ago
So they pay tax on 30k but none on the 2k per month. Not that big of a loophole.
Den_VR•4mo ago
More like on top of whatever “free money” they could have as “gifts,” they can now move an extra $2k/month as daddy’s tip.
itake•4mo ago
In tips
throwawayq3423•4mo ago
Right on time for them to lose the next election so people blame Democrats.

It's all so cynical.

theultdev•4mo ago
If Democrats win they could extend them
brendoelfrendo•4mo ago
If Democrats win the presidency, they would still probably need cooperation from Republicans to get an extension through Congress, which means that there are no good options for the Dems.
throw0101d•4mo ago
> If Democrats win they could extend them

And what happens to the debt/deficit then? You know, the thing that the GOP constantly complains about but always makes worse?

The GOP loves to cut revenues (taxes, especially for top percentiles):

* https://en.wikipedia.org/wiki/Starve_the_beast

throwawayq3423•4mo ago
They love to cut revenues and explode the debt. "The party of fiscal responsibility."
estearum•4mo ago
but it's a very stupid policy.
kimbernator•4mo ago
Yes but this policy is absolutely terrible, so it seems unlikely they would
throwawayq3423•4mo ago
Just in time for Republicans to blame them for making the debt worse. It's all so cynical.
cyanydeez•4mo ago
It's a free tax fraud for everyone! hooray!
japanuspus•4mo ago
> PSA: the "No Tax On Tips" provision expires...

My understanding is that this is true for all the Trump handouts: otherwise the ten-year economic outlooks would have cratered. The Economist had a couple of nice analyses on this.

Of course this means that the next administration will need to start with tax increases just to get to neutral, but maybe that is a feature?

overfeed•4mo ago
> My understanding is that this is true for all the Trump handouts

Only those for humans expire. The corporate tax cuts are forever. Read into that what you will.

Y_Y•4mo ago
Luckily the politicians involved are set to expire around the same time
rayiner•4mo ago
Those were set to expire this year as well but got extended.
zimpenfish•4mo ago
> true for all the Trump handouts: otherwise the ten-year economic outlooks would have cratered

Not just that - they're often timed to expire early into the next administration which, if Democrats win, is an instant "look how the Democrats treat the working folk!" hammer. e.g. "Tax Cuts and Jobs Act" from 2017, expiring at the end of 2025[0].

[0] https://theconversation.com/trumps-plans-to-extend-tax-cuts-...

ahoka•4mo ago
The Republican strategy is to booby trap the US economy every time they are in power since Reagan.
rayiner•4mo ago
Tax bills are universally passed through the budget reconciliation process these days to overcome the filibuster (can do a budget with only 51 Senate votes). That process has many restrictions on what tax changes can do to projected revenues outside a certain window: https://www.ey.com/en_us/insights/tax/prospects-for-budget-r....
drdec•4mo ago
> Of course this means that the next administration will need to start with tax increases just to get to neutral, but maybe that is a feature?

Oh no.

What you have missed is the incredible end run around the spirit of the reconciliation process that the Republicans did this time around.

So, the did these tricks with the tax in Trump's first term, with tax breaks set to sunset in order to have a revenue-neutral effect over the required ten years.

This time around they needed to extend those breaks, right? So they must had to cut spending or raise other taxes in order to do that and have a revenue-neutral effect, right?

Ha ha, no! They convinced the CBO that the baseline for the reconciliation process this time should be whatever was in effect for the last few years. So those breaks are already baked in and don't need to be counterbalanced. It's a two-step, long-term process for making things permanent through the reconciliation process that otherwise one could not.

junar•4mo ago
I think one aspect that is understated: "No Tax on Tips" is only a deduction for the purposes of federal income tax. W-2 workers still owe FICA and other payroll taxes on such income, and similarly self-employed workers would still owe self-employment tax.

To me, a more appropriate name is "Some taxes on tips".

onlyrealcuzzo•4mo ago
And most of their tax is already at the state level or FICA, so it's more like, "most taxes on tips, unless you make decent money, then you bet a break."

But that's not winning an election.

1oooqooq•4mo ago
of course this administration did something that help sites like only fans.
jedberg•4mo ago
And Amazon (via Twitch).
1oooqooq•4mo ago
i see so much ads there i even forget there's donation
conductr•4mo ago
I’m more concerned with no tip on taxes. Sales tax is usually in the subtotal that tip percentage are calculated on. Most POS I’ve seen do this way
johncolanduoni•4mo ago
Before someone is confused: POS here means “Point of Sale”, not “Piece of …”.
tonypapousek•4mo ago
Roughly equivalent anymore, though.
b3ing•4mo ago
So I can do a deal for $1 then ask someone to pay the other $100k in tips?
romanovcode•4mo ago
Close, but not really. 25k a year is the limit. So you could do a deal with $1 and $25k per year.
gregjw•4mo ago
Oh nice, congrats to all US digital creators.
Woodi•4mo ago
Nah... "Digital creator" is dream full time job so 25k / y is not so much. So tax still applies :)
billpg•4mo ago
"Would you like to leave a tip for your server?" "20%."

"And the cook?" "What?"

"The cook wants in on the no-tax-on-tips so we're asking how much you'd like to tip him. We're also going to ask for the cleaner and the guy who delivered the ingredients earlier this morning."

sebtron•4mo ago
If you think this is absurd, this is how I feel, coming from a non-tipping country, when I read about the tipping culture in the US.
epolanski•4mo ago
The toxic tipping culture is spilling abroad too.

Several restaurant owners are advocating in Italy to make 20% tips mandatory so they can reduce their costs.

robertlagrant•4mo ago
It's not "spilling abroad". Italy had tips built into their bills when I went there over 20 years ago.
mystifyingpoi•4mo ago
That's just paying with extra steps.
epolanski•4mo ago
Nonsense.

What you're referring to as "tip", is the coperto. It's a minimal, fixed, optional fee that includes service, bread and table setting.

Not every place makes you pay it, it's more common in more expensive restaurants, but still, it ranges from 0 to an average 2 euros per person.

Comparing it to %-based mandatory tips in US is nonsense.

kamma4434•4mo ago
In Italy tips are never required as are a part of what you pay for. You leave a tip for outstanding service if you want, but it’s neither mandated nor customary.
robertlagrant•4mo ago
No one's saying they're required. When you say it's not customary, how do you reconcile that with it being printed as part of the bill?
sebtron•4mo ago
If it is printed on the bill it is not a tip. You must be talking about "coperto", i.e. servics costs. This money does goes to the waiter.
tirant•4mo ago
Tipping has a powerful advantage: it aligns the incentives of customers and servers almost perfectly. Because tips aren’t capped, waiters are motivated to go above and beyond to satisfy each guest. Without tipping, the server’s motivation often drops to providing only adequate service—more in line with the restaurant’s interests than with each individual diner’s needs.

You can see this difference in customer experience worldwide. Nowhere delivers consistently attentive service quite like the US. By contrast, many European countries, especially those where tipping is uncommon (such as the Netherlands), often provide service that feels efficient but impersonal.

malnourish•4mo ago
Personally, I could do without hyper-attentive wait staff.

Dining out in Italy is phenomenal for many reasons, a laid back serving culture is just one of them.

Yeul•4mo ago
As a Dutch person I despise fake smiles and servile attitude.Especially when it is bought with money.
goodpoint•4mo ago
In US I got exaggerated smiles with *winks* from waitresses. No, they were not genuinely flirting with me.
mxfh•4mo ago
That's anectdotal. There is literally zero alignment or correlation between tipping and good service.

You want to have a stress free experience the waiters tries to upsell you at every corner.

If you mistake upselling for attention then you're part of the tipping complex already.

Good service comes from good training and experience not the assumed money left over in your wallet. That's the businesses goal of not leaving any money on the table. So the alignment is between the business owner and the employee if anything, not between employee and customer.

I would make an exception for bars, but that's about it.

Fade_Dance•4mo ago
>That's anectdotal. There is literally zero alignment or correlation between tipping and good service.

The correlation is simple. The better the perceived service from the customer, the bigger the tip is.

>You want to have a stress free experience the waiters tries to upsell you at every corner.

In the vast majority of restaurants the server has little interest in upselling you. The exception is, perhaps, at a place with an expensive wine list (and regardless of tipping, businesses will be looking to upsell that wine list).

>Good service comes from good training and experience not the assumed money left over in your wallet.

Speaking as someone with industry experience, this is honestly just funny to read.

Training? For a server? Lol!

These are by and large scrappy people (and I say this lovingly). Lots of cursing, dubious substances, people working hella long hours in other jobs, people who are just planning on working for a few weeks and then leaving, etc. Yet when a big table comes in, they button up and act perfectly, despite cursing about the customers in the back, and the incentive is not "up selling" (servers care about seat count and nothing else - that's how the hierarchy of the seating pecking order is structured) it's about tip money.

Good service doesn't come from experience either. The newest servers will basically give the best service (they're nice to everyone), while often the most experienced servers are the most jaded and cranky. It's a rough job to be part of long term and it breaks you down a bit.

Also, regulars who tip well are truly appreciated by the service staff, and the staff really does go out of their way to make sure they get good service. This is because of the steady, predictable income stream. I don't know what to tell you other than, yes, the tip money absolutely does play a large part in the customer experience, and there is a correlation.

oskenso•4mo ago
Before my Lyft trip to the airport I got a notification from the app: “Add a tip before your ride.

Make your driver’s day, they’ll see your tip before they accept your ride”

xhkkffbf•4mo ago
It's getting harder to get the drivers to accept rides in some situations. Recently, I watched some Uber driver accept my ride and then drag their heels to pick me up in the hope that I would cancel. They didn't like my destination.

This reminds me of the old Soviet union where the rates were fixed by some central committee. In order to get a cab to pick you up, you would hold up fingers that represented how much extra you would tip. The more fingers, the more likely the drivers would actually stop.

justin66•4mo ago
> Nowhere delivers consistently attentive service quite like the US.

This paragraph reads like it was written by someone who’s never been to planet earth but has diligently read documentation on how it works.

rkomorn•4mo ago
FWIW, it matches my experience in the three countries I've lived in and the dozen others I've traveled to.
hkpack•4mo ago
Or it just matches your own cultural preference.

I personally _hate_ American service with passion.

I prefer to be left alone most of the time in restaurants or not being talked to like the best friend I haven’t seen from the high school.

I also have an expectation that the waiter is not in a desperate position to rely on a tip for their living and is fairly compensated by their base salary.

rkomorn•4mo ago
No, it matches my experience.

My preference isn't necessarily for American-style service, that's just an assumption you'd be making with zero information.

jen20•4mo ago
What you’re describing is how it _should_ work. Instead every server feels entitled to 20% regardless of how bad their service is and it is frequently atrocious.

Besides, I’d rather have efficient and impersonal than (at best) fake nice.

ctack•4mo ago
Living in rural Spain service is chill. Am used to it by now. Went to an upmarket restaurant in France other day and it took me ages to realise the waiter was vibing me the whole meal for a tip. Such a weird transactional space. Person literally smiling and being agreeable for money. Insane.
Fade_Dance•4mo ago
>Person literally smiling and being agreeable for money. Insane.

And you think other hourly service workers aren't being that way to some degree? Lol.

throw0101d•4mo ago
> And you think other hourly service workers aren't being that way to some degree? Lol.

Like plumbers, electricians, mechanics, carpenters/framers?

ctack•4mo ago
“Insane” is probably a bit strong
sdeframond•4mo ago
Does Japan have a strong tipping culture ?
Fade_Dance•4mo ago
If you consider strong tipping culture to mean "severely insulted", then yes!
Woodi•4mo ago
Good to know.

But why exactly ?

Leherenn•4mo ago
I believe it's because tipping implies they need a money incentive to do a good job. Essentially insulting their professionalism.
rkomorn•4mo ago
> Nowhere delivers consistently attentive service quite like the US.

I have found this to be true in pretty much all interactions (on average), regardless of whether the person is on a tipped wage.

Americans value salesmanship and customer service in ways that few other countries I've been to do. They market better, they sell better, they make customers feel better, in pretty much all types of businesses.

Source: someone who's lived in three major US metropolitan areas, and two in the EU.

renehsz•4mo ago
That might make sense... until they ask you to tip before you receive the service! When I order a coffee at a small shop, and the card terminal asks me to select a tip (displaying the default choice of 20% centered and in bold), how am I supposed to know whether the coffee will be good or not? As a regular customer, sure, you'll have an idea of what the general level of service at this place is like. But the expectation these days is to always tip, even if I've never been there before and I have no way of accurately judging the quality.
scarby2•4mo ago
I never tip before receiving the service. Always hit zero. It feels a bit weird to begin with but you get used to it and i've not been treated any differently. A tip is generally not required for coffee or to-go/counter service.
throw0101d•4mo ago
> Because tips aren’t capped, waiters are motivated to go above and beyond to satisfy each guest. Without tipping, the server’s motivation often drops to providing only adequate service—more in line with the restaurant’s interests than with each individual diner’s needs.

Do people tip their accountants? Their nurses and doctors? Their dentist? Their mechanic? The cashier at the grocery store? The clerk at the shoe store who fetches the shoe in the size/colour I want?

Perhaps people should just do their jobs properly because that is what they're paid to do. And if they're not doing their jobs such that the restaurant/business suffers in its reputable they get fired and replaced by someone who will. (Kind of like how I have to do the job I'm paid to in IT or the company will act accordingly if I do not.)

valkmit•4mo ago
No, but if you gave these people extra $ to pay attention to you - on average, they would.
maest•4mo ago
Here the other thing - sometimes I don't want extra service, I just want my food and that's it. But the waiter will try really hard to impress me with something I don't want.

Then I'm the bad guy for refusing to pay for something I didn't want in the first place.

tirant•4mo ago
No. You still have the right to not tip.
gchamonlive•4mo ago
Yeah, it's optional but if you don't tip everybody loses their minds. I've experienced this once abroad, I was with a group of exchange students that didn't want to pay the tip because students are always broke, and the cashier was mad to the point of being aggressive.

In Brazil we have 10% tip which you can opt out, and we usually do it when there is a problem with the service, but I wouldn't think twice to ask for the tip to be excluded if I was undergoing financial hardships, and I'm sure nobody would bat an eye.

I think it's not just the tip culture that is toxic. I feel like the entire American culture is plagued by toxic masculinity, the gun culture and hyper individuality.

brookst•4mo ago
I don’t disagree with your diagnosis of American culture, but the tip thing is just shifting wages from employer to customer. It’s no different from VAT versus sales tax: same result, different math.

Opting not to tip when it is part of the economic transaction is no different from walking out with the silverware; not expressly forbidden, just a breach of social contract.

gchamonlive•4mo ago
Then why call it a tip? It's just cynical then, which I don't know what's worse.
brookst•4mo ago
Plenty of customs don’t make logical sense, and plenty of words have dramatically changed meaning over time. Don’t read too much into the word. A “fine” used to mean a voluntary settlement.
gchamonlive•4mo ago
You are right, I wasn't really thinking about how customs evolve organically. Outrage kinda blinded me because that experience was such a culture clash that clouded my understanding. Thanks. I mean, I still feel like using the word "tip" for something that is culturally not optional, even though you can opt out, is unnecessarily confusing and hostile, but that's what respecting foreign culture is all about.
AlecSchueler•4mo ago
> walking out with the silverware; not expressly forbidden

Isn't property theft very expressly forbidden?

ToucanLoucan•4mo ago
It's absolutely different because a customer is not legally required to tip, and if a customer decides not to, that is directly impacting a worker's take-home pay.

And walking out with silverware is theft, I genuinely have no idea where you pulled that from as a similar example.

at-w•4mo ago
>It’s no different from VAT versus sales tax: same result, different math.

There's lots of evidence that tips vary significantly based on the traits of the customer (like the customer's self-esteem and sense of shame: https://www.emerald.com/insight/content/doi/10.1108/ijchm-02...) and the employee asking for the tip (e.g. attractiveness and simple demographic characteristics: https://www.sciencedirect.com/science/article/abs/pii/S01674...).

lcnPylGDnU4H9OF•4mo ago
> when it is part of the economic transaction

Well, shit, if I made it part of the economic transaction, you'd have a point. What you're saying is that the employers are not holding up their end of the transaction.

drdec•4mo ago
In America, at least in restaurants, employers are allowed to pay a lower minimum wage to tipped employees. So tips are an essential part of a servers compensation and should not be considered optional.

Let me put it another way for my foreign friends - if you are dining at a restaurant in America with table service, you need to consider (at least) a 15% tip as part of the base cost. If you can't afford that, then you can't afford to eat out, choose a different option.

j7ake•4mo ago
It this lower wage true for states like California?
__s•4mo ago
https://www.dol.gov/agencies/whd/state/minimum-wage/tipped 16.50 in California, 20 for fast food workers
scarby2•4mo ago
as the other commenters didn't answer the question:

No, it is not true for California

scarby2•4mo ago
> In America, at least in restaurants, employers are allowed to pay a lower minimum wage to tipped employees. So tips are an essential part of a servers compensation and should not be considered optional.

This actually varies state by state. In Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington the minimum wage does not change tipped vs non-tipped. Also in other states if the pay after tips do not meet the state minimum wage the employer is required to make up this difference.

If you actually look at the data tipped employees make significantly more vs median income in countries with tipping than without.

> If you can't afford that, then you can't afford to eat out, choose a different option.

I think this works if we're talking about a full restaurant, If we're talking about a mostly empty restaurant then even a 5% tip is money that the server would have not otherwise had, pretty certain they'd choose more money over less.

ToucanLoucan•4mo ago
I love that we're just like "so FYI we decided this particular class of worker is okay to pay less than a living wage but to compensate if they do really good at their job, we're going to make it a social norm that people pay more than their bill costs and they keep the difference."

Wouldn't it make far more sense to just pay them a living wage and charge what that costs and be done? It's genuinely the only part of eating out that annoys me is it ends with a math quiz.

gchamonlive•4mo ago
Then why call it a tip? The cynicism is just unbearable. If it's a tip people are going to have the option of opting out, disregarding any unwritten social norm that contradicts the actual word used.
Yeul•4mo ago
I would not be surprised if those poor waiters make more money than their customers.

Americans pride themselves on their rugged individuality but deep down it is all very collectivist.

gchamonlive•4mo ago
Explain to me how a society with minimal well care, where people would rather die of a heart attack than get taken to a hospital, where you need to save your entire life to afford a mediocre education for your children... How is that a collectivist society?
BobaFloutist•4mo ago
> So tips are an essential part of a servers compensation and should not be considered optional.

Actually, if tips don't bring tipped minimum wage to minimum wage, employers are required to increase pay to minimum wage.

tdeck•4mo ago
While this is true, good luck asking for it.
datadrivenangel•4mo ago
employment lawyers love when managers refuse to honor their payment obligations. Treble damages.
tdeck•4mo ago
This comment is very disconnected from the reality of service industry wage theft. Employment lawyers rarely bother with a case where the potential payout is a few thousand dollars.

In theory the federal or state department of labor could do something without the worker needing a lawyer. The federal DoL is useless in such cases and most state DoLs don't seem to do much either.

AlwaysRock•4mo ago
My understanding is if an employee who gets paid largely in tips isnt making more than min wage, that employee is almost always let go or quits. Employment layers dont love trying to prove a case that is pretty unlikely to be provable.
throwway120385•4mo ago
They can always find a reason, such as "so and so customer complained about your level of service and I can't have any complaints as a business owner" which on its face is a legitimate reason to fire someone.
galaxy_gas•4mo ago
^This is how it is in practice

You would rather be let go for performance reasons rather than they will pay you difference in 5$

BobaFloutist•4mo ago
I don't understand how it's the customer's fault if managers are blatantly stealing wages. That sounds like someone else's problem to solve. If servers make it public, I'll stop going to that place, but preemptively tipping to avoid illegal labor practices feels like a bad solution.
_DeadFred_•4mo ago
Nah. 10% is standard, 15% is they did something good besides what's expected, 20% is amazing.

But I personally have chosen a different option because it's just exploitive all the way around. The business trying to exploit it's employees, the employees exploiting customers (10% being pushed up to 15%).

ponector•4mo ago
Why then 15%? Why not $10 per hour of service for all tables assigned to the waiter?

Why chef who is actually prepping your dish got fixed rate but pretty girl should get percentage of the total bill?

If I order a $100 bottle of wine, should I add $10 for the delivery from wine room? And extra 5$ for the opening? And $5 for refill?

setr•4mo ago
Because what was once an active decision became a default, what was a default became an expectation, what was an expectation became an effective-requirement.

And lo, norms are made, the ratchet turns, culture solidifies, a new line written to the social contract. And tip-dependent workers have non-optional tipping.

If you really want a logic to follow strictly — any worker class whose wages are depressed by expected tipping should be tipped

Freedom2•4mo ago
> you need to consider (at least) a 15% tip as part of the base cost

No, I don't need to do anything. Restaurants are free to charge a service fee and state that plainly on the menu, as many already do. Otherwise it's optional and I will treat it as such.

gommm•4mo ago
To be fair, tipping the cook makes more sense to me than the waiter. I come to a restaurant for the food, I don't particularly care about the service beyond a certain baseline. It never makes sense to me that waiters can earn more with tips than kitchen staff.
dbbk•4mo ago
Yes it seems totally arbitrary. When I first visited the US I paid for our group, and didn't tip the waiter because he got our order wrong, and was met with aghast faces. I didn't realise you're supposed to tip EVEN when the service is bad!
rogueparitybit•4mo ago
The employer is shifting the responsibility of wages to the customer (you). It is customary in business to pay a wage even if an employee makes a mistake. The tipout structure of most restaurants, where the server tips out the kitchen and support staff, also collects a percentage of all *sales* from the server's tips, so not tipping results in a server paying your tipout from their tips just for the privilege of serving you, hence the agast faces.

Tipping should be illegal to substitute for pay. Majority-tipped restaurants are almost always predatory and take advantage of both customers and employees in order to further enrich the owners.

brookst•4mo ago
That’s a very engineering viewpoint. But much of the world values the whole package, including clean and neatly set tables and place settings, advice on the menu, timing of courses, QA of prep and fixing issues without customer intervention, help with any mishaps like spilled drinks or dropped silverware, boxing of food to go, etc.

A utilitarian only interested in pure food quality is much better off cooking at home. You can do better at a quarter the price.

Food/software is only about 25% of the cost and value in these businesses, though perceptions on value differ of course.

elygre•4mo ago
«Tip-pooling» is common many places. This implies that tips is shared between employees, for example including the kitchen staff.
0xffff2•4mo ago
I don't think that's true in the vast majority of establishments? Tip pooling usually means that the front of the house staff pool their tips. Not that they share with the entire restaurant.
elygre•4mo ago
Yeah, I don't know anything about the majority of establishments.

My single reference is the Norwegian upscale restaurant Theatercafeen, which introduced tip pooling across waiters and kitchen. It was highly contentious when introduced by the restaurant: The waiters took the case to the courts, and it went all the way to the supreme court of Norway [1], where it was decided that the employer could decide rules for tip-sharing.

[1]: https://www.arbeidsrettsadvokater.no/domstolsnytt/dom-deling...

dugmartin•4mo ago
In the US, the cook and busboys and other support staff normally also receive tips as part of the "tipping out" system where the servers split part of their tips. It is voluntary but not really - if you, as a server, don't tip out your tables start not getting their food as fast and the table isn't turned as fast.
Folcon•4mo ago
I have a question for the American's in the audience here.

There's always this narrative about tipping allowing for exceptional service and I wanted to know what meta advantages or options have you been given or seen as a result of this?

I'm reminded by Charlie Sheen's character in two and a half men consistently tipping the pizza delivery driver who brings him a champagne bottle with his pizza.

As a comparison elsewhere, I've had French wait staff bring me bread at the table whenever I visit Paris and even if the restaurant is out they source it from nearby restaurants unprompted with no expectation of a tip even though I would perceive that as being above and beyond service.

I'm trying to understand if we're all on the same page about great and even exceptional service :)

thinkharderdev•4mo ago
I'm not a fan of tipping in general, but as an American who has spent a lot of time in Europe, my experience is that the level of service in American restaurants is quite a bit higher than in European ones on average. That's not to say that in Europe it's bad service per se, and in certain ways I actually prefer it in Europe where the server isn't constantly "checking in" on me while I'm trying to have dinner.
VBprogrammer•4mo ago
I can't speak for the rest of Europe but, as a Brit, I find this kind of overbearing and inauthentic type of service somewhere between cringe and outright annoying. Especially when it's accompanied by a lack of competency, for example missing items or not doing what they said they'd do.
Fade_Dance•4mo ago
A lot of people feel this way, but as someone with experience here, it's also not just about trying to be overbearing.

Remember, servers are dealing with the average American. A decent portion of the people that come in are extremely demanding. /Three rounds of sauce on the side in different configurations... Can I have the sauce from that dish on the other table on the side of my dish? Oh it's part of the cooking process? Can you ask the chef if he can put it in a little ramekin? Oh it's a sickly sweet glaze that needs to be cooked? I think I'll try a little bit of it anyway. Ewww this is disgusting take this back!

Dealing with this day in and day out will default you to that service state after a while, especially because the "average working class Americans" often tip the best.

Every server knows screwing up the actual food nukes their tip (and it often does). If they're working in that context and still messing that up, well, they probably can't be helped.

throw0101d•4mo ago
> That's not to say that in Europe it's bad service per se, and in certain ways I actually prefer it in Europe where the server isn't constantly "checking in" on me while I'm trying to have dinner.

I want them to check in to ensure that the order was (a) correct, and (b) properly cooked.

There may be instances in which you drop some cutlery or need an extra napkin, and a quick check-in could be useful. You could also flag them down with a raised hand or eye contact. A busser could achieve the same results too (also refilling water glasses).

simiones•4mo ago
As an European (Romanian, more precisely) who has visited the USA, I would say that servers there were much more patient and attentive than servers I'm used to both from my own country, and from various European vacations. I still remember a young waitress who repeated all of the options on the menu literally 5 times going around a table of 15 people.

However, I'm not at all convinced this is as tied to tipping as people claim. My own country has a very clear and old tipping culture (though 10% is the more common "target" tip for food service), and yet service here is often terrible, with bored and annoyed waiters. I think it's much more of a cultural norm than any kind of strong economic incentives.

dfxm12•4mo ago
I wanted to know what meta advantages or options have you been given or seen as a result of this?

None for me.

creer•4mo ago
I find the main difference between the US and Europe to be cluelessness and very different views about what good service might look like. My conclusion is that good service comes from management valuing good service and training (or firing) their staff accordingly.

The most common difference: restaurant wait staff aggressively removing plates as soon as or before you are done with them. While in Europe that obviously would be rushed and seen as overly aggressive and a hint that it's time to get the hell out to make space for other dinners. Super rude in Europe, considered attentive service in the US.

Striking experience: At an allegedly "five star" resort in the US, some wait staff being very loud and chummy with the guests to the point of disturbing the guests, and other guests, and neglecting other tables! Inconceivable in Europe - reserved for top management or owners. And failures to pay attention left and right - by all the staff everywhere. Clearly blameable on management defining the wrong parameters as objectives to their staff.

Tipping in the US is entirely hit or miss: some staff will remember past tipping, but only some. Some staff make a visible effort at service (before tipping), but only some. Etc.

But to be fair, there was a time when service in Paris got so bad and rude that the waiters corporation ran ad campaigns asking them to cut it out and do better. French service still has a bad reputation (of rudeness and scams). And there, it's very much NOT that waiters don't know what to do and not do. They know.

I would see working out "out of bread" with the neighbors as normal when the restaurant is not super busy, and "above and beyond" at rush hours. But then in France, running out of bread before very late in rush hours would be a clear management failure.

setsewerd•4mo ago
Ironically, as an American the only time in my life when I had a waiter effectively ask us (a couple) to hurry up so other diners could sit, was at a Michelin starred restaurant in Naples, Italy. We hadn't even been there an hour, weren't even done eating yet. Perplexes me to this day.
kelipso•4mo ago
I honestly think it leads to much worse service. The waiters end up calculating every action they make to a money value, leading to every interaction feeling transactional. Creeps me out.
bilekas•4mo ago
Great, another way companies can offload the responsibility of looking after their staff to the customer.

It sounds like a win for the employee, "ah but you don't need to pay tax on your tips". But in reality it's government saying "The company you work for owes you nothing, take it from the customer".

skeezyboy•4mo ago
why havent nurses and doctors (ya know, actual life savers) been historically tipped? whats so special about waitresses?
ahoka•4mo ago
Historically you would pay with cash for your food and sometimes counting change would be awkward so you just round up.
skeezyboy•4mo ago
tipping isnt giving someone your spare change is it lol
volkadav•4mo ago
doctors and nurses have enough power to demand fixed professional(0) wages that "unskilled labor"(1) does not. no one _wants_ to make $2/hr(2) and to have to rely on the generosity of the general public for a living; in other words, it isn't the waitstaff having special privileges but rather the opposite case of them lacking better protections.

(0) which is to say, much higher (1) a propaganda term if there ever was one. work one shift as a waiter and tell me it take no skill afterwards! (2) $2.13 barring state-level increases over the federal minimum, to satisfy the pedants

skeezyboy•4mo ago
so you tip garbage men? you tip macdonalds servers? you tip hospital cleaners? you tip schoolteachers?
vharuck•4mo ago
I don't know how common it is anymore, but I vaguely remember people tipping their garbage men at Christmas.
spacebanana7•4mo ago
It's not unheard of for people to give gifts to medical teams after a long course of treatment (at least in the UK).

Service industries have an advantage in being short cycle interactions, so even small amounts of social gratuity can be effectively monetised. There're also much more public so other people can see our generosity / stinginess.

romanovcode•4mo ago
Because it encourages corruption. Doctors would prefer to work with patients who tip is not something you want to see.

Even worse example would be "Why can't I tip a police officer? ;)"

meindnoch•4mo ago
In some countries you do.

When my grandpa was in the hospital towards the end of his life, the nurses let him lay in his own piss for half a day before doing anything about it. We gave them an envelope with a generous "tip", and after that they started paying much closer attention to my grandpa.

Many people give a few thousand USD cash to the midwife and the doctor after delivering their baby.

tgv•4mo ago
The line between bribing and tipping isn't that thin.
skeezyboy•4mo ago
which country is this? you tip all service staff? are you presenting me a logically coherent tipping culture or just another version of the american righteousness?
aezart•4mo ago
American tipping culture has its origins in the post-Civil-War south:

> Following the Civil War and the abolition of slavery, formerly enslaved Black workers were often relegated to service jobs (e.g., food service workers and railroad porters). However, instead of paying Black workers any wage at all, employers suggested that guests offer Black workers a small tip for their services. Thus, the use of tipping to pay a worker’s base wage, instead of as a bonus on top of employer-paid wages, became an increasingly common practice for service sector employment. In the early 20th century, these employers, who shared a common goal of keeping labor costs down and preventing worker organizing, formed the National Restaurant Association (NRA). Over the past century, the NRA has lobbied Congress to achieve these goals, first by excluding tipped occupations from minimum wage protections entirely, and later by establishing permanent subminimum wages for tipped workers (One Fair Wage 2021).

From https://www.epi.org/publication/rooted-racism-tipping/

pcthrowaway•4mo ago
> The act also provides that tips do not qualify for the deduction if they are received “in the course of certain specified trades or businesses — including the fields of health, performing arts, and athletics,”

So buskers have to declare their tips, but servers don't?

zupa-hu•4mo ago
In my book, asking for a tip is called begging. A tip is voluntary.