"since they'd have to pay taxes on every dollar of income. "and there it is...
Posted on 07/14/2018 11:44:56 AM PDT by SeekAndFind
"Fight for $15" is the rallying cry for most Democrats these days. But soon after Washington, D.C., voters approved a hike in tipped wages to $15, Democrats on the city council moved to repeal it. That's what happens when ideology crashes into reality.
On Tuesday, 7 of the 13 members of Washington's city council sponsored a bill to jettison the wage hike for tipped workers that 56% of D.C. voters had approved by a ballot initiative less than a month before.
Under Initiative 77, the workers would see their minimum wage climb from the current $3.89 an hour to $15 an hour by 2026, erasing the difference between tipped and nontipped workers.
Keep in mind that D.C. is about as heavily Democratic as you can get. It went for Hillary Clinton by a 91%-4% margin.
But the D.C. council members came to understand what economists — and D.C. restaurant workers themselves — already know. Sharp increases in the minimum wage will cost lost hours, lost jobs and lost income. (The unemployment rate is over 9% in D.C.'s poorer wards.)
Not only would the wage hike pretty much eliminate tips — why tip when the waiter is already making as much as everyone else? — it would almost certainly make workers who keep their jobs worse off financially, since they'd have to pay taxes on every dollar of income.
The problem with the D.C. council's move isn't that it's trying to overturn the will of the people, but that it isn't applying its newfound understanding of economics more widely.
This month, the minimum wage for nontipped workers in D.C. jumped from $12.50 to $13.25 an hour. It will reach $15 an hour in just two years, and then go up every year after that at the rate of inflation.
(Excerpt) Read more at investors.com ...
You have to think that restaurants in DC will also be losing republican customers since harassment is served with the appetizer course.
Oh no. You a******s voted it in, now OWN IT.
On Tuesday, 7 of the 13 members of Washington's city council sponsored a bill to jettison the wage hike for tipped workers that 56% of D.C. voters had approved by a ballot initiative less than a month before. Under Initiative 77, the workers would see their minimum wage climb from the current $3.89 an hour to $15 an hour by 2026, erasing the difference between tipped and nontipped workers. Keep in mind that D.C. is about as heavily Democratic as you can get. It went for Hillary Clinton by a 91%-4% margin.
Thanks SeekAndFind. What this means, really, is that the jackasses know it won't be given any significant coverage.
Spread the word.
“Not only would the wage hike pretty much eliminate tips — why tip when the waiter is already making as much as everyone else? — it would almost certainly make workers who keep their jobs worse off financially, since they’d have to pay taxes on every dollar of income.”
You are already required to pay taxes on every dollar of income, or more. The IRS imputes tips to waiters, even if they don’t get them.
From what I've read in the past, the IRS only taxes them on 7-1/2 percent as tips, which splits the difference between zero and 15 percent. However, no one fully reports what they get as tips, almost always under-reporting tips except when there is a record such as receipts from use of charge cards. Waiters probably don't report the cash tips in full. Plus a lot of people tip 20 percent, which is a bigger discrepancy from the 7-1/2 percent that the IRS uses as a benchmark.
I try to put cash tips into the waiter's hands when they're really good, and I bet that it isn't reported to the IRS. If wages go up to $15 minimum, I will only tip for excellent service and not to others.
Of course, cutting hours and jobs as a result is Trump’s fault.
"since they'd have to pay taxes on every dollar of income. "and there it is...
Where do I donate to a group committed to keep DC at $15? They made the sh!t sandwich. Make them eat it. Reeeeeeeeeeeeeeeeee!
The good news for applicants is they are going to work for an illiterate company.
Id there an economist on the planet who does know about the unemployment effects of an increase in the minimum wage?
I used to tip well over 20%, but no more in $15 areas, since the tip is already baked into the price.
I don’t know of any country that tips more than 10%, most don’t even tip - since service is what waiters are hired to do in the first place.
I was one of those rare university economists whose hero was Milton Friedman. I ate lunch alone...a lot.
You probably haven’t heard my story from my Ivy League days...many many many years ago... :-)
I finally got sick and tired of the brain-dead leftist Economics professor’s puerile lectures and approached him after class one day.
“Have you read Ludwig Von Mises, I asked?”
“Nope, he responded—never heard of him.”
Life is too short to argue with idiots—even when they are Ivy League professors. :-(
No need to tip anyone when the tip is already being baked into the cost of the service, food, drinks, goods, etc.
If they add more tips to the bill without asking; take your business elsewhere.
I am one of those people who likes to think he has some sense.
Usually I dine at lunch alone in my office, usually with a DVD of some old TV show for a bit of company.
It doesn’t bother me at all. Apparently, I don’t have any friends either. I am friendly with plenty of people because I can fix their technology.
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