Do you think waiters should be taxed on tips they earn?

Question

wow lots of response thats cool just to add im not about not taxing the wage tax on hourly is all good and i understand but on the tips as well?

Answer 1

I surely don't think they should be. But it's unfortunately earned income and therefore its taxed just like how everyone else is taxed.

Answer 2

It's income - why shouldn't it be taxed?

I also think that a good waiter/waitress works very hard and people should not be stingy with tips.

If someone works as a waiter/waitress at a place where the tips just bring them up to, or a little above, minimum wage, they probably won't owe any tax, and might even get earned income credit which would give THEM money without paying in. If someone works at a high-end restaurant where they make well over minimum by the time tips are figured in, then why shouldn't they be taxed the same as the guy working at some other job and making the same money?

Answer 3

Generally waiters are poorly paid, and tipping is considered a supplement of their wages by all concerned. Employees and employers.
I feel that it shouldn't be taxed, because it's an income that largely is dependent on the generosity of the customers and furthermore there is not an acceptable means to estimate the real amount per waiter. If a good mannered waiter gets more than a grubby one, who can tell what their respective earnings are?

Answer 4

I don't think waiters should be taxed on tips, however I know some waiters that make $1500.00 a week in a good place. They should be taxed..

Answer 5

Of course! I'm taxed on all of MY earned income. Why should anyone else be any different just because of their career choice?

As to those who claim that tips are a gift, they are not. They are compensation for good service. A gift is given with no reasonable expectation of anything in return -- the service you give kills that argument.

If you give me crummy service, it will reflect in the tip. I never "fishball" for poor service as I want the waiter to know that I didn't just forget. On the other hand, if you give me exceptional service you will be WELL rewarded when I leave my tip.

Answer 6

No, but for a different reason than "everyone should pay taxes." Tipping should be abolished altogether.

Waiters are paid far under minimum wage, because it is assumed they will get tips. If tipping were abolished, their wages would have to be raised.

Fun fact: Eleanor Roosevelt used to leave a note for her waiters: "Tipping is un-American. Thank you for your service." A good point, but I'll bet she made no friends in the service industry.

Answer 7

I work in a restaurant as a waiter. I do in fact believe in taxation. Although, I dont like double taxation or excessive taxation.

When tipped in cash, the only way the IRS can know about it is if you claim it on your pay checks or at your tax filing

Think about it... anyone who answers "no" to this question is just selfish. Of course you dont want to be taxed. Might as well argue against having your hourly wage taxed, too. Why sales tax? Whine whine whine about the government taxing you... because thats money you worked for, no matter how you look at it. Of course youre complaining... its what anyone would do who selfishly protects their own interests instead of seeing the bigger picture

Answer 8

I've been a waitress for 30 Yrs. and after paying all the taxes on my check plus on my tips ....I barely draw minum social security. Honestly It Stinks because I made good tips as a waitress. Most weeks I made more money than my husband who worked in a charcoal plant.

Answer 9

No, I don't think they should. If waiters/waitresses should be taxed, then people that have yard sales, rummage sales, etc. should be taxed on what they've earned. And although I was a waitress for 11 yrs., I also don't think tips should be added on the bill. Tips are a reward for giving good service, and people should not have to pay for lousy service.

Answer 10

Absolutely!

Tips are not gifts. It is compensation for services...that is income.

A gift is property given without anything given in return.

If servers don't have to report tips, then I'm working on tips alone as an engineer. I'm going to make sure that my employer pays me $2.16/hr but also gives me a mandatory % tip that is a "gift"...right...that'll work.

you simply cannot differentiate between wages, salaries, and tips...they are all compensation for services rendered.

Answer 11

Personally I don't think they should be taxed on tips because it is hard to keep tabs on how much they get, and they really don't earn enough money to have to pay a big tax bill at the beginning of the year. I know a lot of people might disagree with me, but this is just my opinion.