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Removing the minimum wage exception to tips does help with that. Part of the reason why tips are inventived
Plus taxes on tips as they exist already has quite a number of assumptions that tipping will always exist. For instance, assumptions of a minimum 8% tip rate for reporting. Which will be withheld from pay from at least that assumption (which you can get back if you earn less by filling)
Wouldn't the elimination of taxes on tips entrench that non-taxable income as something servers would die before ever surrendering? Treating it as income means that whether that money is coming from hourly vs. tips is irrelevant and, at the end of the day, hourly compensation is always more reliable if all else is equal.
This was my concern, but if y'all think servers will give up their tax free tips... sure...
Yes, it would.
It would be preferrable to change the tax code on it differently, yes, but unfortunately in elections that going to be difficult to explain to people rather than the much simpler "no taxes on tips"
Mind you that trump has the same plan on tips tax removal here but without any of the minimum wage change stuff
You think the tax coming off their tips is enough to make servers indifferent to them?
If they are guaranteed minimum wage then at least I can feel like they aren't going to starve if I don't tip the ever increasing suggested tip %.
A server can easily work 4-5 tables an hour. Assuming average bill of $50 per table, and average of 10% tips, that's $20-25 per hour. That average is most likely higher because of people like you who feel guilty and use the suggested tips lol.