This doesn't make any sense. People in the entertainment or service industry are typically required to claim 10% of their earnings. When they receive their paychecks they are taxed on that money just like anyone else. When they receive their W2's at the end of the year, they file tax returns and have to pay taxes just like anyone else? Of course their are some people that don't pay taxes, but thats not the sole reason that the SS system sucks. It's obvious to anyone that SS is not a true form of supplimental income, thats what long term investing and pensions are for. Your "points" on SS are a totally different subject and have nothing to do with tipping. People that don't tip or tip poorly for no apparant reason are either cheap scumbags or socially retarded or both.

 

As a general rule of thumb the service industry has a very high percentage of their income that is untaxed.

If you don't report your income you aren't taxed on it. So $1.00 in cash tips is the equivalent to about $1.30 to all of us who do pay our taxes.

So this is relavent to whether to tip or not and how much.

 

A buddy who worked in the industry told me they have the best memories on who are the good tippers. So I usually tip a little better for places I go often ..

I never had trouble w/ those places cuz some of them do recognize me ..

 

Which goes back to the whole argument about tipping so they don't pee in your coke dilemma.

 

What doesn't make sense? They don't pay their share into the system but I have to! If you tip them it goes in to their pocket. You think they only make 10% more then their paycheck? Of course not, they are not require to claim 10% they are required to claim what they actually made in tips, period. 10% is just so we get something instead of the customary nothing. I think every dime of a tip should be tracked! Because of the I have to pay more taxes to cover their irresponsible asses! The tax rate for most people is hovering around 30-38% Yes you have to pay SS rather or not you're going to get anything isn't relavent because the rest of us that are paying into it are in the same boat as well. What makes a waiter special in that they should be able to get away without paying it as well? Bottom line they typically don't do the honest thing and fork it over.

 

 

Although what you are saying is technically true...its a little off. The only tips servers have untaxed is cash tips. Certain restaurants, thats almost never, since all customers pay with credit cards once the check hits a certain number. (If the average check for two is $150+, more often than not the payment will be credit card)

The only case of low low taxes of which you speak of can only be applied to bartenders.