It never fails to shock me how a tip is demanded in the US. People simply refuse to listen to reason when we (yes, there are others!) tell them that leaving a tip isn’t necessary. Well, I’m hoping for too much here, but if you’re a waiter, here are 5 reasons why I will try my best not to give any money to you and why the reasons for tipping are crappy.
1. You act as if you’re my best friend
Just leave me alone ok? I don’t want to bloody chit chat with you. I want food. FOOD! Get it? It’s a restaurant. I go there to eat. I go because I want either Italian food, Chinese Food or something else which I can’t get in a McDonald’s. So I come to a restaurant to fulfill my cravings for it. I will pay for what I value – food. Not you.
Christ, you offend me – kneeling down next to my table, pretending to like me and chatting as if you’re my best friend when it’s obvious that all you’re after is the tip! I’m not a bloody money bag you know. I will pay the bill which includes the cost of the food, the environment and the salaries of the people involved – nothing more.
The only way to get money out of me that I don’t have to legally pay is by prying it out of my cold dead hands…
Bottom line: I don’t want to know your name, or interact with you for any longer than I have to in order to place my order. As far as I’m concerned, you’re the equivalent of a conveyor belt that brings me my food and a computer into which I input my order. Of course, I won’t be rude. But don’t expect me to interact with you any more than I would with some stranger.
Image Credit: cafemama
2. You don’t get paid enough
And this is my problem how exactly? It’s astonishing that customers are expected to make up for your employer’s cheapness in not paying you a decent wage. Please include the full cost in everyone’s bill thank you very much. I’ll pay it because I have to and the charge is there for me to see.
What’s really funny here is that no one seems to criticize the employers! All criticism is reserved for non tipping customers instead of the owners of the restaurant for not paying a decent wage. Wtf! Could it possibly be because you guys know you can make much more by tips and under report your income to the IRS?
3. You’ll spit in my food if I don’t tip you?
And I’ll shoot your kid if you don’t give me a million dollars. Seriously, am I even hearing this right? You’re actually using the threat of blackmail to make me pay you? Well as long as you’re openly claiming to be a criminal it’s all right I guess.
Fortunately that’s why I prefer buffets. Listen apart from it being illegal, this shows your poor integrity. But if you spit in someone’s food because they didn’t give you money you didn’t earn, then you’re a loser and deserve to be a waiter for the rest of your life.
4. Bringing me my food isn’t worthy of being paid extra
Did you cook it? Did you invent it? No. You picked it up and brought it to me. While it might not be easy, there are plenty of jobs which are much worse – shop floor workers for example. And I’ve been a shop floor manager, so I know. Face it – compared to other jobs, being a waiter is unskilled. You get paid what the market will think your services are worth. You don’t deserve more for your work over and above what your employer should pay you.
5. Money doesn’t grow on trees
I expect you to be grateful and pray for me at night if I tip you 10%. Be happy I gave you anything at all. I worked for the money in my wallet and by giving you some I didn’t have to, I’m doing you a favor. Learn to remember that when people give you something they don’t need to, it’s a favor. You don’t complain that they didn’t give you more!
By the way, the same thing above applies to all professions that demand tips including those on cruise liners.
So now that you understand why I won’t give you money you don’t deserve, stop with the “oh how could you?” attitude. I can. And I will.
Update: Here’s a rebuttal of the many silly justifications for tipping that people have given in the comments section.
I don’t see any demeaning in your statements at all. I’ve read a great sum of your comments and I don’t see any personal insult to servers or anybody else at that. I just think a “conveyor belt” (or otherwise any subsitute) isn’t a reasonable comparison in all situations. I know your meaning and in fact I share the same sentiment when it comes to basic idea of “bring me the food, and leave me out of your salary”. Especialiy when I just want to order a simple meal, eat and be left alone. But there are times when a little extra service (or a lot) is required. Especialy when you have a party. I like the idea that if my service is substandard I have the option of not paying for it. I also like the idea that if my service is outstanding I can give a litle extra to ecourage further great service to my next visit.
You’re first two points I still fail to understand. You want to know the upfront cost? But don’t you already in a sense? I live in China and there are a lot of things that are expected (tipping though is not one of them for sure). Before you visit you already factor in an additional 15% for a service charge. I’m not saying it’s moraly right or wrong, but I feel like you if give yourself that expectation to begin with, you already know your upfront costs since it works the same way in all full sevice restaurants anyway. But let’s just assume that you do not tip, or never will, you still know the price anyway right? At least this way you have a choice to either pay for your service, or not.
As far as the market is concerned that is the exact mistake most governments make. The market is not at all decided on “perfect information” because such a thing doesn’t exist. Supply/Demand and just basic wants and desires changes daily. Anything the most severe to the most petty people will pay any price for, and fixing prices is kind of a mistake… Please don’t confuse that with our current topic though because I think that’s kind of a different discussion. I was more less refering to some of the other comments of “how capitalism works”. I think that discussion requires a lot of different facets but my point is, as a consumer, you have the option of paying for quality. And quality is only a perception, and an oppinion I might add, that can change in the snap of a finger… That’s why the information can never be perfect. Even if you take Supply/Demand out of the equation, people pay for personal perception too. In some countries people prefer to marry heavy set people/vs. thinner folks but that changes through time too… These things are fickle and that is the market (hence perception of good service).
At any rate though you are a very intelegent debater and you have many great points to which I agree.
To my friend Common Sense, it’s not that I do not agree with you, it’s just too far from the original subject. Before you can make a match with abiolishing minimum wage and not tipping, we need to establish the matter at hand first in order to effectivley discuss this. Right now “tipped employees” are the only workers making below common minmum wage (besides Cali). I feel like if this kind of discrimination weren’t existent in the first place we can be having the conversation to your point. Not that you are wrong at all, but I just think it’s too far off topic… But your points are valid and I do in fact agree.
In reply to Ryan
perhaps my points are a bit off. As minimum wage is an entitlement given to all, wait staff are discriminated against due to a current status quo. However, if wait staff felt so maligned, they should have fought for their rights ie unionize, protest or simply quit their jobs. If enough wait staff quit their jobs due to wages, the restaurant industry might listen. The topic does, however, relate to how true capitalism SHOULD exist and how it exists today.
Now again back to tipping. Things may be expected upon me, sure. However, they are not LEGALLY required, are they? Can I be prosecuted for not tipping? I can if there is an auto grat since it is clearly written on the receipt, however tipping itself is not legally mandated. I do tip, however its usually no more than $4. Usually I tip maybe $2/person. So what is wrong with that? Again, you cannot legally challegne me that I am not tipping properly.
Your points on how things are dynamic rather than static is the libertarian in me. Why should the government FIX a minimum wage when standards of livign change on a DAILY basis? We are human beings. We are not static, but dynamic beings. One day, $5 might be just fine, but the next, $10 will be required. True capitalism would allow for corporations and businesses to be at the very top of their game. The government simply has helped the big cats (i’m looking at you wal mart) to force the little man out by regulations such as minimum wage, wage regulation, labor reg, etc. So regulation actually impedes business rather than protect it. It hurts the consumer more than helps. Things should change. If my business changes the price one day, consumers would feel the pain and would stop coming to my shop/company.
That works for tipping as well. Now in the above scenario, if all restaurants told their consumers that tipping was REQUIRED by them, or they may face the law (which they can do), then the system works.
As a server, do I feel entitled to a tip? No. There’s is ZERO entitlement as a server to a tip. And as a server, I’ve stiffed other servers for piss-poor service. However, a tip out of gratitude is nice. And I do believe that if you can’t afford even a small tip, you can’t afford to go out to eat. Serving, while not an extremely difficult job, is not a walk in the park either, and I do believe that a little bonus helps to make the job that much better.
Think about it this way: When you drive up to a Taco Bell, or a McDonald’s, how many of the people who work at that window are all smiles and butterflies..? I rarely see anybody excited to be in that line of work. Why? Because it can be boring, tedious, and they have to deal with being called scum, idiots, morons, and low-lifes by some pissy consumer because somebody forgot to throw an extra ketchup in the bag. And before the argument that, “Well maybe they should double-check again…” is made, let’s not forget: No human is perfect. Mistakes are made by everyone in every profession. Perfection escapes humanity no matter how good you are at a job. And when you’re at peak lunch and dinner hours in the food industry, it’s oftentimes hard to have the time to double and triple-check an order when you have bags lining up to be passed out a window, and a manager is breathing down your neck about working faster (because THEY want their bonus pay for hitting the numbers that the company wants to see so that THEY in the higher-up get their consumer’s money). Now apply that mentality and rate of pay to somebody who has to serve you for almost an hour at a time. Do you think they’re going to be thrilled to deal with rudeness, anger, and general hatred from somebody for a small wage? Would you be?
Tips are incentive to give better service. Not an expected reward, but rather, an incentive to go that extra mile for a customer. This is the AMERICAN MINDSET. There you have it. If you offer almost any American any job, one of the things you can be sure that they’ll look for is the, “What’s in it for me?” part. And this mindset is starting to become global (refer to the previous paragraph). If you were making $7.25 an hour, and a guest started berating you (as their waiter) for a meal that was prepared improperly, would you be in a rush to make things right? In today’s society, most people, knowing full-well that they’re going to get paid anyway, would not be entirely inclined to immediately fix something for somebody who is aggressive and pushy. Sure, at the risk of their job, it will get done…but it may be in a time frame other than what would be considered “acceptable” by some. However, a little extra tip is an incentive to go just a little bit further.
If you take away tips, and pay servers a standard wage, I can almost guarantee you’ll see a serious drop in the standard and quality of service that’s provided in every establishment, even the high-end ones. People will stop being as willing to wait tables, and you may even ultimately see the end of establishments, because, heck, why would I want to be yelled at for $9 an hour by some stranger, when I could go lick stamps, or stare at a computer screen, and not have to deal with that kind of stress for the same paycheck?
And yes, some people may argue that going the extra mile is taking “pride” in your work. But when you receive angry and rude responses from customers on a regular basis, that can be very hard on even the most tough-minded, prideful person. So the next time you consider ripping into your server, if service has been fair to good, and the issue at hand is not their fault, just stop yourself for TWO seconds and ask how you’d feel if you were standing there, and being yelled at for an issue that might be out of your hands, or is not your fault. It’s comparable to punishing a child for the shoes the dog chewed up.
As a server, I took my job BECAUSE I realized I could make decent money to pay my way through nursing school. Not because it was a first choice. If I had my first choice right off the bat, I’d be an RN-BSN in a hospital somewhere, taking proper care of patients. But I have to work my way up from the bottom to get there. So I started by waiting tables to get a head start. You’ve gotta spend money to make money. Find me another job where you can make a little more than minimum wage and STILL have a flexible enough schedule to attend school for 20 hours a week, AND study 15-20 more on top of that, and I’ll consider it.
And let’s not forget that serving is also a GREAT way to practice and improve upon positive social interaction with other people. I don’t wait tables to be treated like a fool, and a second-class citizen…so please don’t treat me as such. The hatred and animosity I see waiting tables is insufferable at times. I wait tables as a way to better myself in more than one way, and make a little extra money in the process. And I feel as though people forget this at times.
I’ll come down off of my soapbox now. I’ve spent enough time rambling about this subject. Bhagwad, I do, however, implore you to reconsider your attitude toward waitstaff. If this article were to ever go viral (much like the recent Applebee’s issue), I’d bet that quality service would become more difficult to come by. Just remember that not ALL waitstaff are there because they want to be. There are pros and cons to waiting tables, just as with any other job or career. Take away the biggest pro (tips) and, as I said before, I can guarantee standard and quality of service will decrease severely.
In reply to Mr. B
remember, slavery and jim crowe were also the American mind set.
I don’t have any problems with humanism, but we are speaking about capitalism and business.
“niceness” has no such place in the arena of finances. “The American way?” Well, the food that you serve at your restaurant, primarily fruits and veggies, were picked by illegal immgirants who make about $4/hour. Don’t give me that stuff.
I don’t really care for the “service” and the “niceness.” What if I just want my food? The problem is the wait staff have created their own monopoly. Sometimes, I don’t want fast food. Sometimes I want a nice Salmon. Fast food doesn’t serve salmon. Why do I have to suffer the torments of “niceness” and “good service” and be burdened to pay a 20% tip just because i want some salmon?
And Mr. B, why do I have to tip in California? Wait staff already make minimum here.
Capitalism does not concern itself with humanism. Your ills mean nothing to me, as far as a consumer point of view goes. Again, I may help you here and there, but outside the business arena.
Why are you all DEMANDING that I be nice? isn’t being nice subjective in the first place? Maybe I consider 10% a really generous tip, right? Isn’t it arbitrary?
In reply to Common Sense
Unfortunately, yes, they were. The problem is, there within lies the same mindset: “What’s in it for me?” In the case of slavery, the suffering of many for the benefit of one. Which, it seems, at times, is STILL the mindset of many big businesses today. Not that anybody partakes in “slave labor,” obviously. But it seems to be becoming more commonplace for big business and corporations to find every way possible to bend the law ever so slightly in order to rake in as much of a profit as possible. Hence your argument of hiring immigrant workers at $4/hr to pick fruits. And I understand where that IS the point of a business…to grow and expand. But at what point do you say, “Enough is enough…”?
And I will agree that you are right that in finances and business (if simply left black and white), humanism has no role. But that’s exactly the problem: there’s a massive gray area when it comes to business transaction that occur at places such as dine-in restaurants, or even many privately-owned franchises or businesses. If you look at it from a strictly financial standpoint, you could say, “I don’t care whether the waiter is an ass or the nicest guy in the world, I still [will/will not] tip.” But where you run into issues in that ideal is that MANY customers DO (or don’t) tip based not only on speed and quality of the meal service, but also the server’s general attitude.
It’d be like going to buy a used car with no warranty, getting home, and realizing that the transmission has gone bad. To sit there and say, “Well…a deal is a deal,” in a cut and dry capitalist world, would be acceptable. But in a humanistic society, it’s more commonplace to feel cheated or to become upset and take the car back to the dealer, and demand that something be done; hence, the interplay of humanism and finances (or in states such as yours, “Lemon Laws,”) to prevent fraudulent sales.
On the second topic, if you just want your food, that’s understandable. And that’s also something that comes with the line of work as a server–you learn who DOES want to chit-chat, and who just wants to be left alone to enjoy their food. Understanding human body language, as well as verbal and nonverbal cues, can help immensely; every human being has preferences. If I get simple, one-word responses from a customer, I tend to leave them be. Will I still perform my basic duties as a server? Of course. I don’t take wanting to be left alone as a sign of rudeness, because even I, as much time as I tend to spend out socially, have my days where I want to be a shut-in and have time to myself. It’s simple human nature. However, when verbage and response becomes rude, or sharp and harsh, that’s when I, like many, might take some offense.
I suppose my idea of “niceness” may be somewhat different from many servers, however. You don’t have to play my best friend when I go out to eat. What I ask for in terms of “niceness,” is as follows:
– A polite or reasonable hello
– A simple introduction
– Take my order
– Food and drinks to the table in a reasonable timeframe (Which I’m lenient on, because I know how busy it can get at times)
– Check back with me once the food is delivered
– Refill drinks
– Ticket to the table
– “Thank you, have a good night.”
Basically, all I’m asking as a patron is that you be polite, and be aware of what’s going on. If I’m feeling social, I’ll talk to you. When the shoe is on the other foot, however, I tend to try to keep conversations with my customers to a minimum unless they initiate. Not because I’m socially awkward or don’t want to talk, but because as you said, some people just want to be left alone.
And in your case, where servers already make minimum wage, I do argue somehwat different. As a case in point, refer to the first few lines of my previous post. If they’re making minimum wage, they’re STILL getting paid. But in the case of my state (TN), if I’m making $2.13 an hour, and I get stiffed on a table, I may actually end up paying out of pocket for someone else’s meal. The restaurant that I work at doesn’t have tip-outs (thank God), but the IRS’s tax rules still apply. So in essence, if you buy a $100 meal, and leave me no tip, I’m paying an 8% tax; so that’s $8 out of my own pocket. I understand that kind of thing comes with waiting tables. It’s simply going to happen. But if it continually happens, why would anybody want to stick around and wait tables? And yes, I understand the capitalism aspect, but that’s where humanism and capitalism are so wound up in each other in our society. And the same could be applied to your situation:
You feel like ordering salmon. So you head to a restaurant, and find a price tag of $9.99. You ask the server for the salmon, and two minutes later, he arrives with a raw, frozen piece of fish on the plate, prompting you to pay the fee for the meal (to make it fun, let’s say that hypothetically, your server automatically gets 20% of that sale). You weren’t exactly expecting raw fish, but in a black-and-white business model, you’d technically be getting what you paid for (and the server would be getting his cut regardless), unless you were sure to define that you wanted a piece of salmon, cooked thoroughly, with spices A and B applied, and sides X, Y, and Z to go with the fish. In that situation, there are inherent humanistic and socialistic norms that apply to said transaction: it’s understood that you want the fish to come cooked and spiced, and that maybe you want a few sides and a drink (and maybe some refills!) to come with the meal. Or maybe you don’t.
Niceness subjective? Yes, absolutely completely. But there are also certain verbal and non-verbal cues that can be defined or construed as aggressive or non-aggressive behavior. Learning these cues plays greatly into the role of understanding and applying social interaction to various situations (even business transactions), such as I mentioned earlier. I don’t demand that anybody be nice. Many people define “nice” differently, you are correct. I suppose that a better word to use would be “polite.” And yes, tipping is a very arbitrary thing, and again, that’s where the business model and humanistic model become interwoven. As a server, I base my tips more on the quality and professionalism displayed by another server than I do the idea that “20% is standard.” As I mentioned in my previous post, if a server is a total screw-up, I don’t find it unjustifiable to stiff somebody. You don’t reward someone for being a lazy or careless…
As far as that is concerned they can, in fact, go stuff themselves. You, I, or anybody else at that, aren’t required to give them anything. I failed to mention that I generaly can’t stand servers. The moment they come to the table I can see that kind of demand in their eyes and demeanor right off the bat. And most of the people leaving comments on this post are of the same element.
And no, I also don’t agree that the burden should be on the consumer at all. It’s most certainly not our responsibility and for anybody who thinks so should really take a good assesment at the way the world works. For people like that I share the exact same sentiment as you do (which it seems like the vast majority of servers). I certainly dont advocate the consumer petitioning the government, forming picket lines, or anything else these “people” suggest. It certainly is their battle and they need to stop with this kind of nonsense.
But however I do think that if the server is at least adequate, we ought to do “what’s right” and pay for service accordingly cosidering the law has them by the groin. And if they ever did organize and protest we should offer support where appropriate. For instance if you beleive in not tipping, but that everybody deserves at least minmum wage, rasing a hand and saying “aye” woulden’t do any harm either (not to be confused with doing any battling ourselves)… I don’t want to confuse that with it being REQUIRED, or at all your problem, but I feel if you are so anti-tipping, it might not hurt to advocate a solution that fits your beleif system, whatever it may be. This certainly is not a matter of what we “need” to do as apposed to something we should consider doing if it’s appropriate.
In reply to Ryan
Certainly I would extend any all reasonable support for a movement to regularize waitstaff salaries. I have no problems with that.
But many in this comment section have mentioned that they would actively oppose such a move because they get much more money with the existing way of doing things. What can I say now?
In reply to bhagwad
Well that’s all the more reason to support such a move. It takes all the justification of their crying about you “not tipping and they cant pay their bills” away. If they got minmum wage like everybody else, who is going to want to hear their sob story then? What can they really do besides huff air? I don’t see anybody listen to McDonalds employees, because they get minum wage. At that point it becomes well… just get another job or deal with it. This way it’s 100% not our problem anymore and no longer up for debate.
But then again why bother at all with people like that. The fact is they do make a killing off of the consumer, and have the nerve to say some of the things i’ve heard makes me feel the same way as you do. The problem is not all severs are like these “people” and not all of them are making this sort of money. I’ve met servers in slower places who really do depend on us to get at least the minmum, otherwise the boss is pissed and they don’t last long.
But yeah I agree with you and this entitlement crap 100%. They come over the table like vultures and then scowl at you if you didn’t tip them they way they wanted.
In reply to bhagwad
some servers themselves said that not being paid minimum wage while receiving tips allows them to make MORE money. Someoen mentioned $30/hour. That’s more than some scientists make. This is the problem. This entitlement has gotten so bloated that no one wants to change it. The consumers don’t know any better because these type of people have monopolized the service industry with their tip lies.
How is this capitalism? What choice do we have? the best choice–don’t tip.
In reply to Common Sense
But you do have a choice… And in your case don’t tip :). Society backlash? Capitalism is all about society backlash, and dealing with the consequences of your actions. I’m not saying being non-tipper is wrong at all, but if others perceive it that way, that’s a free society. That doesn’t mean you NEED to do it. Capitalism means you choose, and you need to deal with them for better or worse. You said yourself you don’t care about others in that sense. Why should they care about you? If you dont want to tip, they dont need to like you either. That is VERY much what a free society is… Comparing the wage of a server, to a scientist, and asking how is that capitalism? Well here in China they answered that question with a communist/socialist cocktail where wages ARE fixed.
You the consumer are part of the market. I think having the choice to pay for service is great. If a server does make 30$ an hour then that means the market called for it… otherwise they woulden’t have VOLUNTARILY shelled it out… But you not doing it doesn’t make you bad or a law breaker for sure. But other’s perception, if they matter to you, will be affected both ways… And to some, the perception of others mean little.
In reply to Ryan
I’m pretty sure a large proportion of tips are not given out of a rational assessment of a waiter’s capabilities, but rather out of emotional blackmail, pressure, guilt etc. That’s ok – I have no issues repulsing such expectations. But it’s not a free market in the sense that the best waiters don’t get the best tips.
There have been numerous field studies showing that people leave pretty much the same tip regardless of the kind of service they receive.
In reply to bhagwad
Well that just means that they are paying the standard. If they got what the consider proper service then that means they paid accordingly… And yes it also means that a great many people do tip out of guilt too but like you said, guilt shouldn’t be enough to stop you from opting out if you don’t want to tip anyway. I don’t think it’s something as daunting as actualy rating a server and needing to put thought in it. Under most circumstances it’s just an automatic 15% unless they eithere wow’ed you or ruined your dinner. It’s more or less the same as it just being printed on the receipt or rolled into the cost of food.
Well I never said the “best” waiters get the best tips. That’s not really how a free market works anyway. Good service is just a perception and an oppinion. There is no text-book definition for it. Some people consider an attractive girl serving them good service enough. Others care about speed etc. But it’s still just a matter of perception based on whatever wants or needs the consumer has… even if it is petty.
But as far as the servers expectations and demands of us I agree. They can take that expectation and shove it. But I don’t think all servers are that assinine. And most wouln’t dare complain in a way that would affect my meal.
In reply to Ryan
Ryan
The issue is that I do have a choice, yes. Society, however, should have to accept this freedom. Not myself, per se, but others are guilted into this status quo. The server who posted, I forgot his/her name, but it isn’t that the market caled for $30/hour. It is that his TIPS amount to that much. This is more out of the guilt and emotional baggage in the US that comes with eating at a restaurant. Most consumers tip out of guilt, which allows for such staff members to bring home upwards $30/hour.
Good call Bhagwad on the field study and the service received. The problem, especially in the US, is we have a very pseudo-humanistic point of view.
I don’t mean to change subjects, but let me give you an example. You know that show Extreme Makeover Home Edition? This is EXACTLY the problem in the US. People THINK they are being charitable by fixing someone’s house. The reality is this: the person’s house they are fixing is probably owned by the family of interest (ie they are home owners), the charity is excessive (appliances and features that are completely unnecessary) while the people that gave TRULY felt they made a difference.
This is where things come back full circle. Many restaraunt goers think they are being charitable by tipping, however this mentality actually is a trap by the wait staff allowing them to bring home bloated wages.
So Ryan, this is why I tip what I please or not tip at all. As you said, it is a capitalist society and I should have that freedom. Even if the waitress may have 20 children, live on Crenshaw, suffers from Hepatitis C and have disabled elderly parents while living in a 300 square foot project with no A/C, I will tip as I please.
Don’t mean to sound harsh, but I’m simply trying to prove a point about tipping (and all arenas of business).
Lol. Dude fuck you and your post. Get a job so you can afford to tip someone for good service.
In reply to Bill
i’ve got a great job. Good service is subjective. What if I want to tip 5%? It is voluntary? WHy should I tip a certain percentage? Why does kindness have to be demanded upon?
I can say the same to you–get a better job so you won’t have to depend on tips.
Just wanted to drop in with something I recently read regarding those states that pay their food service workers federal minimum wage:
“I live and work in Nevada. Service workers here make federal minimum, but our paychecks are eaten up by something called ‘tip compliance taxes’.”
In reply to Valerie
The tip compliance program is just something that helps make sure that tips get reported and taxed properly. Especialy if a tipped employee is making federal minmum.
I hear the complaint often that “our server checks are taxed heavily and reduced a great ammount”. But many people forget that is because they are taking home, cash, untaxed tip money and that needs to be accounted for. If you make a lot of tips, you’ll end up owing more taxes later. and in fact if your making federal minimum it may even put you in a higher tax bracket on top of that which sometimes become retroactive if it’s unprecedented too.
I know from looking at a pay stub and seeing “tip compliance taxes” seems kind of brash for the firsts sight but it really prevents a server from needing to pay the IRS back money when it comes time to file an income tax return… and to make sure they actualy do claim their tips instead of just keeping the cash.
Just compare one pay stub to another and you will see. A server gets taxed generaly the same ammount as anybody else. It’s just a different system that’s all.
Makes sense. Thanks for clearing that up Ryan!
found this:
[We are pleased to welcome Greg, who most recently wrote on Rationally Speaking about dietary pet views, among our staff contributors. Welcome aboard, Greg!]
by Greg Linster
http://gprs.olhblogspace.com/
At many restaurants in the United States you are served by a waiter or waitress who is paid a dismally low wage, usually one that is so low that the server wouldn’t do their job without the possibility of tips. Whatever the reason, consumers generally tend to find this situation palatable and participate in this bizarre cultural custom called tipping, where the diner leaves a tip in the 10-25 percent range based on the perceived quality of the service.
In microeconomics one of the assumptions (insert your favorite economist joke here) is that agents are rational, i.e, amongst other things, agents are utility maximizers. If real people actually behaved this way, though, they wouldn’t leave tips. Here’s why: when the check arrives the service has already been performed and either the diner gets to keep their money or they can give it to the server. What would the rational agent do? Certainly she wouldn’t just give money away that she could keep for herself — after-all, money provides a store of value and she’s a utility maximizer!
Some people object to this claim on legal grounds. While one certainly has a legal obligation to pay the bill, there is, however, no such legal requirement to leave a tip. Gauche as it might be, it’s not illegal to pay your bill at a restaurant and then leave without tipping. Therefore, economic theory tells us that a rational agent shouldn’t leave a tip at a restaurant, yet I’ll venture a guess that most people actually leave quite generous tips. How can this be?
First of all, I suspect that some rational people still tip because they feel compelled to by the non-financial benefits that come with following social norms. A failure to tip could cause one to be deemed as cheap or stingy by family, friends, or colleagues. Another reason might be because the diner frequents a restaurant often and wants good service the next time they come back. I think many people simply value these types of non-financial benefits more than they do the financial cost of the tip.
So that may explain why some people tip, but it’s still not a sufficient explanation. Here’s a little thought experiment: let’s suppose you were on a business trip in a place you’ll likely never visit again, say, Fargo, ND. Furthermore, let’s suppose you have just finished a meal at a restaurant by yourself and have just paid the bill. Here, then, is the question: would you leave a tip with no social capital at stake? If you would still leave a tip in this situation then you might not be as rational as economic theory portrays you.
Essentially, I think the cultural practice of tipping allows restaurant owners to unfairly transfer risk to the servers. In other words, a stingy, but legally compliant customer can harm the servers’ bottom line, but not the restaurants’. Additionally, there is a lot of cultural ambiguity when it comes to situations in which we are supposed to tip (including situations outside of restaurants). Foreign diners, for example, may be unaware that they are supposed to tip in the United States. What I want to argue is that both consumers and servers would benefit from abolishing the cultural practice of tipping. Abolishing tipping will help servers be exposed to less risk and it would alleviate much of the confusion about situations that do and don’t warrant tips.
For the sake of making this a dialectical argument, let’s examine some of the reasons why the cultural practice of tipping might be a positive thing. First off, servers may claim (in fact I’ve heard some friends say this) that while some customers may stiff them, others may tip very graciously. If that’s the case, I think we need to figure out the net effect. Also, it’s often believed that servers wouldn’t perform their services if there were no possibility to make a tip, but that can’t possibly be true. Many service personnel (e.g., grocery baggers and auto mechanics) adequately fulfill their duties without the presence of a tip, so I’m quite perplexed by this argument.
In line with that last point, I’ve become increasingly interested in the following question: why is there a cultural norm to tip servers at restaurants, bellhops, and taxi drivers, but not clerks at the grocery? How do these norms develop in the first place? Strangely, when I visit the grocery store my groceries usually get bagged quite well. And my car mechanic, who arguably has a much more important job in terms of protecting my safety than does a server at a restaurant, does not accept tips. He does his job astoundingly well too.
I think the explanation for this problem is rather simple, the true cost of the service, in this case bagging groceries or car maintenance, is actually reflected in the explicit price, which I conveniently know upfront. If the wages for these professions weren’t fair, people wouldn’t do the work. Shouldn’t the same thing be true of servers in a restaurant?
Let’s say that restaurant owners raised their prices by 20 percent and paid their servers appropriately according to the market signals. Servers would, then, be paid a wage that reflects the true cost of their service and skills, just like grocery baggers and auto mechanics. The restaurant owner would simply reflect this additional cost in the menu prices. The $10 meal would now cost $12.
While it’s unlikely that the irrational practice of tipping will become antiquated any time soon, I hope that I’ve demonstrated that it is, at least theoretically, problematic and that the arguments for keeping it are rather weak. Irrational as it may be, I will continue to tip quite generously until something does change.
GREAT READ!!!
In reply to Common Sense
That’s the first thing you posted that I can actually agree with, Common Sense. I think it summarizes what we have all been saying really nicely. Of course it makes more economic sense for a consumer to not leave a tip, but there are other factors at play that compel people TO tip.
Though I couldn’t help but think something, at the examples of “service workers” provided. I haven’t met very many friendly, bouncy mechanics or grocery baggers. This is because they know they will get paid for simply performing their job duty and nothing more. I have this feeling that if, hypothetically, tipping were to be abolished nationwide, you’d find yourself with a population of apathetic servers all over. Just a hunch, though. It is a good article, I like how the author doesn’t overtly take either side on the issue.
In reply to Valerie
The thing is, sometimes I’m not paying for friendliness. I just want my food, that is it. I mean I went to England, where you don’t tip at all, and the wait staff were WAY more friendly there than here. I mean what gives?
I’ve got no respect for someone who won’t tip. You have no idea the privilege it is sit in a restaurant and have someone (a staff) bring you WHAT you order, WHEN you want it, on a CLEAN PLATE, with real UTENSILS without shooting at you or getting all ‘splodey. Plus bring you a beer if you wish. I gladly tip at least 20% for someone who can do all that (even badly)…I usually go up from there. But that is me, with 26 years in the Army and 3 combat tours in Iraq and Afghanistan (plus 3 more in Korea). Appreciate what you have, when you have it– all the cheap bastards out there have never sacrificed anything for anyone and I would prefer not to live in the third world shitholes I have served in. I like America, and Americans and you can keep your foreign customs. The best part about coming to America is you can leave your past behind, assimilate and remake yourself. If you are willing to serve me, you are in. If you do it well, mores the better you. Let the cheap suffer with their own frugalness– they don’t drink in the experience and usually don’t treat others as anything except annoyances. I have also tipped well in Germany, Australia, Korea and a host of other countries– but on returning from combat and eating off cardboard with plastic utensils for years (even the Afghans could get silverware but NOT the most powerful military on the planet) I like service with a smile. I will pay for it too. But I’m an American. I carry a gun on my person and usually in my truck everywhere it is legal– which is most places where I live. Don’t like it? Move to NYC, Boston or Kalifornia.
In reply to redleg
You have no idea the privilege it is sit in a restaurant and have someone (a staff) bring you WHAT you order, WHEN you want it, on a CLEAN PLATE, with real UTENSILS without shooting at you or getting all ‘splodey.
Wow. I guess paying the bill for a service makes me “privileged” to obtain that service huh? The restaurant hires the waiters and charges me for the bill which I pay.
The rest of your rant seems…irrelevant for the lack of a more polite word. Don’t turn this into an “American pride” thing.
You home country– and I have been there– is the very definition of said third world shithole. Pakistan ain’t very nice either. I’ll turn this into be grateful for what you’ve got issue. I am grateful when I go into a restaurant and people will serve me. You are not. Nothing I can do about that, but don’t tell me I have to respect you for being cheap. People get along in hard times by being willing to help each other out, and you should be happy someone is willing to serve you. Put it into perspective. It is a privilege to live in a civilized society, and someone is paying that price today– a cop, a fireman, a soldier, sailor, airman or marine so you can sit back in CONUS and bitch about how horrible a custom it is to tip. Tipping is not that way in all parts of the world. So what? You would be the kind of guy I wouldn’t cross the street , as my old First Sergeant used to say, to piss in your ass if your guts were on fire. Just sayin’. Maybe you should move back to the UK if you don’t like it here. Plenty of places that would take you I am sure, maybe Bangladesh. And we need a little more American pride. Your ancestors worship cows for god’s sake. Don’t lecture me on cultures making sense. These are human beings we are talking about here, nothing rational in most of our history. Helping each other out is part of what stops us from killing each other when times get tough.
In reply to redleg
Again – what does this have to do with either the US or India? There are many Americans on this very comment stream who agree with me. So take the ridiculous jingoism somewhere else. My objection to tipping isn’t tied to any country.
So if you don’t mind, let’s actually discuss the logic of tipping rather than making emotional irrational appeals. Convince me that you have some substance to your objections.
In reply to bhagwad
I already did. You have indeed missed my point. It reflects nothing more than that you’re cheap and wish to have something for nothing. Your diatribe does nothing except prove that fact. Tipping is American, leave, or be thought of as cheap. Since you have no fundamental problem with being thought cheap, I do find it amusing that you had to justify your cheapness with baseline rules. You should learn to enjoy the little things more and breathe this life in. You only get one. And be grateful for the things you have and the people you love as they can be taken away by anyone, at any time, for any reason. As George Orwell said “People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.” I am one of those men, and I am grateful to have a restaurant where someone will serve me. I cannot reason out of you what was not reasoned in but “emotional irrational appeals” make up 99.44% of human history. Asking for logic in human society (let alone the internet) is an exercise in futility. I don’t agree with all Americans or Indians, that is the beauty of this great nation–and you wish to get rid of tipping and replace it another from another culture– that is my fundamental objection. I do not wish this nation to become any more like another nation. Not like Japan, India, the UK or god help us Europe. Their path of failure, awesome in its magnificence, is a history of horrors I wish not to repeat. Let us be Americans with a nice fat 20% plus tip while you stew alone at the corner table leaving a quarter and wanting the rest of us to be grateful. We have taken your measure and found you wanting in human spirit and generosity. Have you no shame, Sir? Be grateful for what we have, try to improve it yes, but for decency’s sake be grateful. Many around this world are not, and that includes many Americans.
In reply to redleg
Oh, I see. Your entire argument is “Tipping is American”! Well I have news for you – not all cultural practices deserve to be respected. They treat women horribly in Saudi Arabia. That doesn’t mean I go there and start doing the same. If your morals are so flexible that you don’t mind doing the wrong thing “just because of the culture”…well that speaks volumes about the kind of person you are.
Tipping is wrong, and unethical. It’s bribery and blackmail. You do it because you feel guilty that another person is serving you and the waiter takes full advantage of that fact.
Enjoy being suckered. Just don’t wrap your guilt in patriotism.
In reply to bhagwad
Sorry brother but that is simply your rationalization for being cheap. I feel guilty about damn little, and tipping is not one of those things. Enjoy your moral high ground. Just be cheap– just don’t try to wrap it up in your logical rationale. We’re not buying. You like to believe you are simply smarter than the rest of us and can dictate how we do and do not live– and then you realize you’re just cheap and wanting of human spirit. Brother the world is full of small people. As Charles James Napier said of your lovely Indian custom of sati (burning a widow alive on her husbands funeral pyre) he said “Be it so. This burning of widows is your custom; prepare the funeral pile. But my nation has also a custom. When men burn women alive we hang them, and confiscate all their property. My carpenters shall therefore erect gibbets on which to hang all concerned when the widow is consumed. Let us all act according to national customs.” Tipping is hardly the epic crime of human civilization. Get out more. Your Mom will probably enjoy the quiet time.
In reply to redleg
*shrugs*. If you feel it’s just a rationalization, you’re welcome come up with logical points as to why that is so. Otherwise everything you say is just hand waving…and even more nationalistic bluster.
If on the other hand you openly state that humans are not logical and are actually proud of using illogical and irrational arguments, well then there’s nothing more to be said here is there?
You are obviously a miserable miseducated and arrogant person who deserves to not even be allowed to eat at restaurants. A tip is not optional and sounding like the cheapskate you are …..you are probably not eating at very expensive restaurants. How is leaving four dollars extra on a twenty dollar check going to make or break you? How would you like if their we’re no servers and everything was fast food? Maybe you should eat at those establishments because you are obviously too much of a cheap prick to go eat with civilization. I hope your food does get spit on and I hope eventually you yourself have to work as a server and deal with an arrogant ass hole like yourself.
In reply to Angelina
Sorry to bust your bubble fantasy world…but a tip is optional. That much I think everyone on this forum agrees with.