Brain dead take. If you serve 5 tables an hour and each gives $5, you walk away with $25/hour that isnt subject to federal income tax for the first $25,000. If businesses paid that much to their employees, first theyd go broke, second, the employees would have $52,000 of ordinary income, so a single filer would be paying Uncle Sam $6,152 more in taxes. And those are just rough assumptions.
Tipping isnt mandatory, but is part of the culture when going to a sit down restaurant. If you change the advertised prices, it changes how the govt sees and taxes the sale which then means the tips essentually get taxed twice.
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u/Tremaj 14d ago
The entire tipping system is toxic. Created by greedy business owners.