I'm sorry, but if I tip the waiter less than 12/5%, then he's screwed himself. I've always considered myself a generous tipper... 15-20% for adequate service, more if it was better than adequate... but service seems to decrease in quality all the time.
I don't expect anyone to bow down and KMA, but courteous and prompt service provided by a person who seems to care about the job he's doing... it's becoming more rare.
When I do get a good waiter/waitress, they can count on being rewarded. It is grossly unfair that a good waiter should have to share his tip with someone who wouldn't rate a tip at all from me.
When a practice such as the one George14 described is in place in a restaurant (socialism) what is the incentive to work hard? You're taxed on 8% of food sales no matter what, 1-3% goes to hired help, etc...