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Having to tip everyone in USA Whassup with that!

#101 User is offline   Badmonster 

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Posted 2006-April-25, 12:55

bid_em_up, on Apr 25 2006, 11:15 AM, said:

Adult entertainment businesses do this on a regular basis (dont ask how I know) ;)

Sorry. I have to ask. How do you know?
http://badmonsters.blogspot.com probably will not change your life.
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#102 User is offline   barmar 

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Posted 2006-April-26, 17:16

I wonder how much of the preference towards tipping is due to the fact that cash tips are essentially under the table wages. People who work in tip-based industries are taxed based on the expected tips, but if they make more than expected it's not hard for them to hide it and avoid paying taxes on it.

I have no idea if this really goes on, but intuitively it seems likely to me. I imagine the government puts up with it because we need these people in the service industry.

Does it really matter whether we tip or the service people receive higher base salaries? If 15% tips are abolished, and we expect waiters to make the same wages, prices will have to increase 15% -- the money has to come from somewhere. For the most part, I think it's just tradition that dictates the choice: we're used to tipping, and it's expected, so base salary is allowed to be that much lower. Other societies don't have the same expectation, so prices and wages are adjusted accordingly.

In US society, where tipping is the norm, few people will ever leave no tip; it's a social taboo. If you get seriously bad service, you might reduce the normal 15% tip to as low as 10% (and maybe include a penny to get the point across). Conversely, exceptional service will warrant 20% or more. As far as most of us are concerned, the usual 15% is part of the regular wages paidfor "normal" service.

Is it a silly system? Maybe. I don't know how we got to the state we're in, but trying to make a major change to this in a country as large as the US would be totally impractical. Perhaps it could be accomplished on a state-by-state basis, but there's little incentive and more important things to do (e.g. ensuring that all the waiters get health insurance).

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