Harris plans to raise minimum wage, eliminate tax on tips

[dit 46,738]

she is ATEing! omg.

Trump is ATE and he eaten wow!

This was probably the only thing he was going to run on and she stole that from him like father time has stolen his wig!

[AsleepOnTheCeiling 7,049]

3 hours ago, Ladle Ghoulash said:

I would like to see this fleshed out a little more. IMO, given that she coupled it with raising the minimum wage, i could see the elimination of taxes on tips scaffolded out with economic policy that provides stable income to lower + middle class hospitality workers that would make their income hinge less on tips, in which case, I think it’s actually a great idea. 

I feel like it'll do the opposite of what you think in ways and make tipping culture worse. If we implement the elimination of tipped wage taxes, we'd likely see a lot of businesses try to justify their workers as tipped workers. Which means they'd pay their employees less out of pocket in a lot of cases, and only supplement the minimum wage when necessary. I think it'll be a negative overall for work culture in the country, pushing responsibility of a decent wage on employees because "if they were hospitable enough they would make more". It also would incentivize them to schedule people who can bring in tips because they're not having to be subsidized by the company. And we'd see even more places ask for tips. 

 

This isn't a tipped wage issue, this is a income issue. Increase minimum wage, increase standard deduction, increase dependent deduction, and base FAFSA only on the student's income. 

1 hour ago, Economy said:

Sounds good but a standard minimum wage on a Country like the US is tough to standardize Nationally

 

A minimum wage that is too high in some Kansas small town will get you a life of poverty in LA or New York

 

Even within the same State theres significant local variances by region on cost of living and economics

Most states with high cost of living have their own minimum wage. Only 5 states don't have a minimum wage, and the federal minimum really kind of saved those people. Ironically, all 5 of those states are Republican states and they're the ones that rely on that fed wage the most. The federal minimum wage is really geared towards protecting people in poverty, not for those in CA who have higher rate of pay due to market conditions or their own minimums. 

1 hour ago, Economy said:

I agree as well tbh. Its income. If you dont make a lot of tips, and ur lower income then you dont get taxed much anyway as youll be in a lower bracket. If u work in some fancy restaurant and make more tips then ur higher income

 

Maybe my perception is warped tho cuz in My Province we also give 20% tips (cuz of US cultural influence) but law still requires tip earners to earn full minimum wage resulting in tip earners often making more hourly than a lot of other above minimum wage jobs so the idea they wouldnt be taxed to me is highly unfair and revolting as ppl earning more than me in some cases would pay less taxes

 

In the US i know tip earners on average make less than here because most States allow tip earners to make below minimum wage so it wouldnt be as revolting but even so... I still think it should be taxed like regular income and let the income bracket determine if you are going to pay a higher tax or not

 

Other industries you dont have the luxury of getting tax free income i dont think its fair that ppl in specific industries get off the hook. To me this feels like pandering to win votes.

 

If u wanna lower taxes for the poor then do it more broadly and fairly, raise lowest tax bracket thresholds to a higher level so all low income can benefit. Not fair imo that only tip earners get tax reduction

In the US companies still have to meet a minimum wage for tipped employees. So if you work 30 hours and only make $100 in tips (averages $3.33 per hour), they'd still have to make you average the minimum wage (7.25-3.33-2.15=1.77*30 hours*. Only issue is that if you get paid biweekly, they'll average out 2 weeks instead of 1. So if you have one great week and one trash week, the great week can prevent them from subsidizing your trash week. 

1 hour ago, TylerMedeiros said:

By any shopping you do….

Shopping isn't going to be accurate though. Lots of ways to buy with cash or buy foreign to avoid paying tax. 

[Guest]

Imagine a governmental trifecta where she could be progressive all the way. The world would so desperately need it 

[SevenWonder 4,790]

4 hours ago, gagzus said:

She should push for a minimum wage across all states. It’s crazy to me that tipping is COMPULSORY in US culture like just pay your people $12 an hour like we do in the UK 💀

I always hear this from non Americans and I always say the same thing: It's a win/win/win.

1. When I was a tipped employee I made more than I would have if paid hourly. By far. No living wage would pay me as much as I made serving or bartending. Not even close. 

2. My employer paid less in payroll, which meant much less overhead and more job security for their employees as a result.

3. And my customers received amazing service (I was a GREAT server!). 

I get that the rest of the world doesn't quite get it, but tipping culture works really well in the US. Especially for servers, bartenders and drivers. Nothing's perfect of course. But I quite liked it. I always felt I had more agency in what I earned each shift. And it motivated me to work harder and better. 

[Bronco 28,304]

55 minutes ago, SevenWonder said:

I always hear this from non Americans and I always say the same thing: It's a win/win/win.

1. When I was a tipped employee I made more than I would have if paid hourly. By far. No living wage would pay me as much as I made serving or bartending. Not even close. 

2. My employer paid less in payroll, which meant much less overhead and more job security for their employees as a result.

3. And my customers received amazing service (I was a GREAT server!). 

I get that the rest of the world doesn't quite get it, but tipping culture works really well in the US. Especially for servers, bartenders and drivers. Nothing's perfect of course. But I quite liked it. I always felt I had more agency in what I earned each shift. And it motivated me to work harder and better. 

1. I worked in hospitality in the UK, I'd walk home most shifts with £100+ in my pocket. Having a minimum wage won't stop tipping.

2. If an employer cannot afford to run a business without paying staff a proper wage then they aren't running a successful business. 

3. You should be a good server regardless of the potential for tips. If its a **** job, **** manager etc I understand. But the quality of service should not be dictated to how much you think the customer will tip. We manage high standards in Europe. Hell, France basically invented the standards of service in hospitality for the front & back of house.

It may have motivated you. But it is a fundamentally immoral system when someone's ability to survive is not guaranteed by holding full time employment but instead left to the whims of individual customers' moods. 

[HelloHangoverz 17,452]

3 minutes ago, Bronco said:

2. If an employer cannot afford to run a business without paying staff a proper wage then they aren't running a successful business. 

This. If you can't afford it, you can't have it. Don't know why this doesn't apply to business as well as consumers.

[pachinko 10,775]

7 hours ago, Roughhouse Dandy said:

Everytime I see her she's rolling out new specific policies and they're all actually progressive. We love to see it. 

Gentle reminder that to get all these great progressive policies enacted we can't just vote her administration in; we have to vote in progressive representatives to the senate and house. 

This 100%! This cannot be stressed enough. 

[gagzus 25,794]

4 hours ago, SevenWonder said:

I always hear this from non Americans and I always say the same thing: It's a win/win/win.

1. When I was a tipped employee I made more than I would have if paid hourly. By far. No living wage would pay me as much as I made serving or bartending. Not even close. 

2. My employer paid less in payroll, which meant much less overhead and more job security for their employees as a result.

3. And my customers received amazing service (I was a GREAT server!). 

I get that the rest of the world doesn't quite get it, but tipping culture works really well in the US. Especially for servers, bartenders and drivers. Nothing's perfect of course. But I quite liked it. I always felt I had more agency in what I earned each shift. And it motivated me to work harder and better. 

Being a GREAT server is essential outside of America’s tipping culture, being a sh*tty server makes you lose your job. Period. 
 

I get that when you’re in the problem system you can’t see why it’s a problem, but it’s ridiculous to me (and MOST of the world) that you guys will charge say $12 for a basic cocktail but then expect us to have to pay what? $2 more dollars to the server to help them live for doing the job they were hired to do AND another what? $2-3 for tax WHICH ISNT EVEN INCLUDED IN YOUR PRICES.

I’m not bashing the servers or the people that work for tips, but you guys shouldn’t have to work for tips, your government has more than enough resources to make everyone have a minimum wage so you don’t struggle.

Plus for god sake include taxing in your pricing. I remember the first time I went to the states as a kid and my mother argued BLINDLY with a food server that she was not paying what they were asking for because that was not the price the food was advertised as.

 

[Economy 53,176]

6 hours ago, TortureMeOnReplay said:

I feel like it'll do the opposite of what you think in ways and make tipping culture worse. If we implement the elimination of tipped wage taxes, we'd likely see a lot of businesses try to justify their workers as tipped workers. Which means they'd pay their employees less out of pocket in a lot of cases, and only supplement the minimum wage when necessary. I think it'll be a negative overall for work culture in the country, pushing responsibility of a decent wage on employees because "if they were hospitable enough they would make more". It also would incentivize them to schedule people who can bring in tips because they're not having to be subsidized by the company. And we'd see even more places ask for tips. 

 

This isn't a tipped wage issue, this is a income issue. Increase minimum wage, increase standard deduction, increase dependent deduction, and base FAFSA only on the student's income. 

Most states with high cost of living have their own minimum wage. Only 5 states don't have a minimum wage, and the federal minimum really kind of saved those people. Ironically, all 5 of those states are Republican states and they're the ones that rely on that fed wage the most. The federal minimum wage is really geared towards protecting people in poverty, not for those in CA who have higher rate of pay due to market conditions or their own minimums. 

In the US companies still have to meet a minimum wage for tipped employees. So if you work 30 hours and only make $100 in tips (averages $3.33 per hour), they'd still have to make you average the minimum wage (7.25-3.33-2.15=1.77*30 hours*. Only issue is that if you get paid biweekly, they'll average out 2 weeks instead of 1. So if you have one great week and one trash week, the great week can prevent them from subsidizing your trash week. 

Shopping isn't going to be accurate though. Lots of ways to buy with cash or buy foreign to avoid paying tax. 

Im aware most states have their own (same here in Canada). I was just pointing out a National standard is hars to rely on cuz u cant really fine tune it to each market

 

Also as for the minimum wage requirement for tipped workers, i know you cant earn less thab minimum wage total per hour there but I meant that here they still have to pay u the full minimum wage and the tip is totally seperate. So in my province minimum wage is around $17/h CAD. They still have to pay you that as a base if you earn tips. Any tips you earn are extra and hourly wage cant get deducted down to a lower number to bring you down to the hourly minimim wage, the two are totally seperate.

 

That law came in 5 or 6 years ago but were still expected to tip the same percentages as before and that irks me because the price of stuff was raised to accomodate that new law but were still paying the same percentage on a higher cost of things. Depending on the sales volume of where you work, some servers here make more money than many other average paying industries.

[HelloHangoverz 17,452]

17 minutes ago, gagzus said:

Being a GREAT server is essential outside of America’s tipping culture, being a sh*tty server makes you lose your job. Period. 
 

I get that when you’re in the problem system you can’t see why it’s a problem, but it’s ridiculous to me (and MOST of the world) that you guys will charge say $12 for a basic cocktail but then expect us to have to pay what? $2 more dollars to the server to help them live for doing the job they were hired to do AND another what? $2-3 for tax WHICH ISNT EVEN INCLUDED IN YOUR PRICES.

I’m not bashing the servers or the people that work for tips, but you guys shouldn’t have to work for tips, your government has more than enough resources to make everyone have a minimum wage so you don’t struggle.

Plus for god sake include taxing in your pricing. I remember the first time I went to the states as a kid and my mother argued BLINDLY with a food server that she was not paying what they were asking for because that was not the price the food was advertised as.

 

omg totally with your mam tbh but as a kid I bet you were mortified 

[gagzus 25,794]

2 minutes ago, HelloHangoverz said:

omg totally with your mam tbh but as a kid I bet you were mortified 

Yes I was 💀 but she’s truly a working class geordie woman who won’t even pay £5 for a pint on a night out. Never mind nearly 40% increase on her food bill abroad lol

[HelloHangoverz 17,452]

1 minute ago, gagzus said:

Yes I was 💀 but she’s truly a working class geordie woman who won’t even pay £5 for a pint on a night out. Never mind nearly 40% increase on her food bill abroad lol

LMAO omfg that's hilarious

[Savage 1,813]

8 hours ago, River said:

I find it funny that this is considered "progressive", that shows how backward the US is lol

I don't think the problem is "if tips should be taxed or not" but a complete overhaul in hospitality, a fixed salary above the minimum wage, the tips should be extra and not the main income.

 

This sounds good in theory but I don’t think the US is prepared for it. Small business restaurants will go out of business, and tbh, you can make a LOT (like, a LOT) more than minimum wage in tips. (Coming from a server, but this is just my opinion.) 

 

Edit: I know it sounds like a crazy system we have in the US, and tbh, it probably is. I think we’re just too engrained in it to the point that it will only hurt the little guy when we try to dig ourselves out. Curious to hear what other US servers think—almost everyone server I know here is pro-tipping system, not sure if that’s just my bubble or what.)

For context: I’m very liberal and am fully backing Harris this election. I always back the Democratic nominee, to give some background to my political identity. 

[Guest]

4 hours ago, Bronco said:

1. I worked in hospitality in the UK, I'd walk home most shifts with £100+ in my pocket. Having a minimum wage won't stop tipping.

2. If an employer cannot afford to run a business without paying staff a proper wage then they aren't running a successful business. 

3. You should be a good server regardless of the potential for tips. If its a **** job, **** manager etc I understand. But the quality of service should not be dictated to how much you think the customer will tip. We manage high standards in Europe. Hell, France basically invented the standards of service in hospitality for the front & back of house.

It may have motivated you. But it is a fundamentally immoral system when someone's ability to survive is not guaranteed by holding full time employment but instead left to the whims of individual customers' moods. 

This. Thank you. Relying only on tipping for your wage makes only those successful in it who are working in a relative employee friendly environment and both have the mental and physical ability to do so. It's only benefitin those who are profitting already. Raising the minimum wage would do no harm to them but only elevates everybody to a certain standard and ultimately brings a much healthier working environment which is in a longterm more customer friendly and also safer to guarantee a prospering business model.

[Ladle Ghoulash 55,392]

12 hours ago, TortureMeOnReplay said:

I feel like it'll do the opposite of what you think in ways and make tipping culture worse. If we implement the elimination of tipped wage taxes, we'd likely see a lot of businesses try to justify their workers as tipped workers. Which means they'd pay their employees less out of pocket in a lot of cases, and only supplement the minimum wage when necessary. I think it'll be a negative overall for work culture in the country, pushing responsibility of a decent wage on employees because "if they were hospitable enough they would make more". It also would incentivize them to schedule people who can bring in tips because they're not having to be subsidized by the company. And we'd see even more places ask for tips. 

 

This isn't a tipped wage issue, this is a income issue. Increase minimum wage, increase standard deduction, increase dependent deduction, and base FAFSA only on the student's income. 

Most states with high cost of living have their own minimum wage. Only 5 states don't have a minimum wage, and the federal minimum really kind of saved those people. Ironically, all 5 of those states are Republican states and they're the ones that rely on that fed wage the most. The federal minimum wage is really geared towards protecting people in poverty, not for those in CA who have higher rate of pay due to market conditions or their own minimums. 

In the US companies still have to meet a minimum wage for tipped employees. So if you work 30 hours and only make $100 in tips (averages $3.33 per hour), they'd still have to make you average the minimum wage (7.25-3.33-2.15=1.77*30 hours*. Only issue is that if you get paid biweekly, they'll average out 2 weeks instead of 1. So if you have one great week and one trash week, the great week can prevent them from subsidizing your trash week. 

Shopping isn't going to be accurate though. Lots of ways to buy with cash or buy foreign to avoid paying tax. 

Yeah, I get that. That’s why I was speculating that the overall plan might be to offer taxless tips in conjunction with stabilizing worker’s incomes thru minimum wage increase, potentially putting an annual cap on the amount that can be claimed annually before it has to be registered as income, or something of that nature. Basically: I share your skepticism on this approach, but I’m cautiously optimistic that she might be able to balance it out with specific provisions or by running it laterally with other policies that would outweigh the negatives of taxless tips.