Few nights back was out at a restaurant for dinner. When I got the bill, went up to the front and payed. The gratuity popped up on the screen giving me options in percentage/dollar amounts. I knew restaurants were heading this direction but hadn’t seen it before. With a waitress standing right there, I asked if overall tip amounts were going up for them since there are now visible options for customers. She said yes but hated it because now her tips were being factored into her overall earnings and she was paying more taxes. In the end she expalined, she was earning less. I was intrigued, so I asked if customers went back to tipping in cash if that would help and she smiled real big.

With a quick search, I found this explanation on the IRS is now targeting the “tip economy”. Remember, the government is completely broke and will be more aggressive in the years to come for tax revenue.

What can you do to help them out? Start stashing some cash on the side and take it with you for tipping purposes when you go out to eat or drink.