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Sep 8, 2013 11:17 AM

The IRS is cracking down on tips


"In a new rule set to take effect in January, restaurants that charge an "automatic tip" have to treat that amount like a wage, not a tip."

  1. Interesting. Will this only hold for restaurants that add it to all checks? What about the cases when they add it for tables of 6 or more or large parties in general? What about private dining and catering?

    1. I like the subtitle: "Why go after billionaires when you can squeeze more out of servers?" ..... the saying "penny-wise pound-foolish" must have been made for the IRS (except that the currency units are wrong!).

      1 Reply
      1. re: drongo

        Your statement assumes that billionaires are cheating on their taxes.

        It also overlooks the fact that, at least in the US, something like the top 1% of income earners pay 30% of the nation's federal taxes.

        Please feel free to step away from the Kool-Aid, and let others take a sip once in a while.

        1. re: ipsedixit

          Thanks. I missed that thread. I'll ask the mods to combine the threads.

          1. re: EM23

            It is impossible to combine threads.. they will shut one down.

            And regardsless of how much total tax is paid by the 1 percent they have more money they to pay than a waiter or waitress. Is it more important to have people to pay equal percentages of their income or to pay the amount they can afford to pay? That is the question. And no Kool Aid here, I only drink spring water.

            1. re: cwdonald

              Is it more important to have people to pay equal percentages of their income OR TO PAY THE AMOUNT THEY CAN AFFORD TO PAY?

              [emphases added]

              If that's your frame of reference, then you need to start drinking Kool-Aid, and lay off the spring water for a while.

              1. re: ipsedixit

                And with that statement this discussion completely left the land of chow and headed into some fundamental disagreements between people of differing ideologies.

                Suffice it to say that ideology aside, a society with all its wealth concentrated at the top is unsustainable and ultimately not good for anyone, regardless of beliefs. Even if you believe that the concentration of wealth is fair, it's not workable over the long run.

        2. The original comment has been removed
          1. This topic has another thread already in progress. We don't want to lose the replies here, so we'll lock this one. Here's the earlier discussion

            Sorry, but we don't have the capability to combine similar threads.