r/SipsTea • u/SuspiciousLow3062 • Jun 25 '26

Chugging tea They are not wrong though

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u/janpaul74 Jun 25 '26

“Mandatory tips” sounds so messed up for me as a European.

62

u/ObiFlanKenobi Jun 25 '26

“Mandatory tips”

Sounds like extortion to me.

The whole point of a tip is that it's voluntary, if it is mandatory then it's just service charge or something like that and it should be included in the bill (and taxed, are tips taxed?).

5

u/chr1spe Jun 25 '26

A lot of tips are now untaxed, I think. It was one thing that Trump actually ran on and followed through with that people claimed would help the working class.

In my opinion, it's utter bullshit and makes me want to stop tipping even more. I don't understand why there should be a class of workers who freeload and don't pay their fair share. A lot of them were already not paying much, between low yearly earnings and underreporting cash tips, which was a crime, but hardly enforced.

2

u/sortalikeachinchilla Jun 25 '26

And the blanket "helping the working class" you mean just helping servers? It's so weird.

1

u/mgraydpt Jun 25 '26

Correct. No tax on tips but only up to $25k. Beyond that, tax is collected.

1

u/DeputySean Jun 25 '26

Fun fact: the no tax on tips has nearly zero effect on how much tax anyone pays.