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Originally Posted by FastAndCurious
I always tip.....usually 20 percent, but I get the uneasy feeling that I am being exploited. I agree with the OP that restaurant prices have gone up a lot. Traditionally, the tip percentage was 15 percent. At that percentage, with considerably higher prices, the tip amount has already been increased.
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I agree, since tips are usually calculated on a percentage of the bill, as prices increase so do tips. I haven't increased my tip percentage due to life being more expensive for the worker, I keep my tip percentage the same since I know the worker will receive more due to the increase in the price I am charged.
Basically, at 20% tipping, the server must serve five customers in order to take in enough to buy one meal. That stays the same even if the price of the meal doubles: at 20% tipping they would still make enough to pay for one meal by serving five customers.
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Further, I have also noticed that at many restaurants, the suggested tip is based on the total bill, INCLUDING TAX!
Why would you tip 20 percent on the tax?
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I would tip 20% on the bottom line including tax because: 1. it is an easy number to find and doesn't require additional math in my head; 2. I tend to tip enough to make the final charge an even dollar amount; and , 3. the amount of additional tip that comes from tipping on tax is negligible to me.
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Last, did you know that the proposed "no income tax on tips" is ONLY for CASH tips?
And why should it be exempt? It's income!
Have a nice day.
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This will come down to the IRS definition of "cash tip" which is very likely to include credit card tips. Otherwise, the law would have had to specify "tips in the form of cash, credit card payments, debit card payments, or check." Better to use the term "cash tip" since the IRS already understands that term to mean what we all think of as any "tip."