How do you feel about the gov taxing and making people count "tips" as a means of income?

Question

The government set laws that state that a person's that are recieved are supposed to be reported so they may be counted as income and employers set a low hourly wage that will help make up differences for those who don't recieve high enough tips to make minimum wage. Do you agree with this, or do you think a person should be paid at least minimum wages and be able to keep their tips as a thank you for good service.

Tips, in my opinion, are not wages. They are "rewards" for doing a good job. I feel like the patron to a restaurant or any other proffession that recieves tips is "obligated" to give a tip instead of giving it because they liked or disliked the service they recieved. (I am not in a profession where I recieve tips so please keep your opinions strict to the question at hand!)

Answer 1

If this is money rec'd and used to count towards your wages then yes it should be taxed. However I think "servers" should receive a decent salary so there would be no reason to tip to compensate for low wages. Then a tip would truly be a bonus for a job well done.

Answer 2

As much as a I hate reporting my tips as a waitress, with tips I make at least 9 dollars an hour or more and without I make 2.13. It is a form of income and you're supposed to pay taxes on everything. I think most people know that waitresses don't make that much an hour so they do give them some kind of tip. The better service people get the more you get for your tip. If it makes you feel any better I found information that at one point only 16 percent of tips were being reported lol. "In fact, the compliance rate with respect to tip income was estimated to be approximately 16 percent, which meant that many employees were reporting and paying tax on none or only a small portion of their tip income."

Answer 3

Tips are income. When I get a bonus at work for doing a good job for the year it gets taxed at nearly 50%. Why do waiters feel that they alone are entitled to keep income without being taxed while the rest of the country is? Sorry. You're no different than the rest of us. You have to pay taxes on your incomes just like everyone else.

Answer 4

I think it is redicilous, wait staff have to work very hard, and they are only paid most times minium wage, and a tip should be just that a tip for good service, free & clear of any reporting. the govt taxes just about everything it can, & it were able it would tax things it can't too.

Answer 5

The government gets enough of our money, I say if you work for a job that gets tips, keep them and leave uncle sam out of it.

Answer 6

I think servers, cabbies, hotel maids, haridressers, etc, deserve a pay rate that supports them rather than depending on "handouts" like beggars. Then there wouldn't be all this hassle of declaring tips, hiding tips, etc.

Answer 7

You should report any tips because they are part of your income, or else get a better job that pays more!!

Answer 8

Absolutely ridiculous like I answered in a previouse question every years we are gettin closer and closer to becoming a communist country.

Answer 9

This should have been done long ago. This is money earned and should be taxable. Otherwise, it is the same as working "under the table" which is illegal.

Answer 10

Well sometimes what I leave is confused as being a tip actually it's a zero interest loan that you can pay back anytime you please that I forgive if I die or you die first. I smell loophole.