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World Traveler
Joined: 29 May 2009
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nate1983
Joined: 30 Mar 2008
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 Posted: Fri Jan 10, 2014 8:51 pm Post subject: |
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| World Traveler wrote: |
| Bartenders can make $50 an hour (tax free) in tips. |
Tips are not tax free. Failure to report tips constitutes tax fraud - obviously it's harder to prove if you were paid in cash, but not reporting tips is no less illegal than sticking your paws into the cash register at the post office when the clerk turns her head. |
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Kuros
Joined: 27 Apr 2004
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| Posted: Fri Jan 10, 2014 8:55 pm Post subject: |
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http://www.gallup.com/poll/165794/americans-raising-minimum-wage.aspx
76% of Americans favor an increase in the minimum wage to $9/hour.
69% of Americans favor an increase in the minimum wage that would be indexed to inflation.
I guess half of Republicans do not enjoy subsidizing Wal-Mart and McDonalds. |
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World Traveler
Joined: 29 May 2009
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| Posted: Sat Jan 11, 2014 4:26 am Post subject: |
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| nate1983 wrote: |
| Tips are not tax free. Failure to report tips constitutes tax fraud - obviously it's harder to prove if you were paid in cash, but not reporting tips is no less illegal than sticking your paws into the cash register at the post office when the clerk turns her head. |
It's illegal but I've never in my life met a server or bartender who reported all their cash tips earnings. (And I've never met or ever heard about anyone who got caught and punished for it.) Waitresses and bartenders make bank. They make crazy amounts of money (which for them is tax free). |
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edwardcatflap
Joined: 22 Mar 2009
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| Posted: Sat Jan 11, 2014 4:29 am Post subject: |
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| Quote: |
| Waitresses and bartenders make bank. They make crazy amounts of money (which for them is tax free). |
IN AMERICA. There are other countries in the world you know, where you don't have to pay someone just to bring you a drink/meal. |
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Deja
Joined: 18 Mar 2011
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| Posted: Sat Jan 11, 2014 6:29 am Post subject: |
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| World Traveler wrote: |
It's illegal but I've never in my life met a server or bartender who reported all their cash tips earnings. (And I've never met or ever heard about anyone who got caught and punished for it.) Waitresses and bartenders make bank. They make crazy amounts of money (which for them is tax free). |
As soon as they cross anyone, go check how fast the IRS shows up to index everything they own, but would not even remotely be able to afford on the reported earnings - the Al Capone deal, as it's known. |
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nate1983
Joined: 30 Mar 2008
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| Posted: Sat Jan 11, 2014 3:21 pm Post subject: |
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| World Traveler wrote: |
| nate1983 wrote: |
| Tips are not tax free. Failure to report tips constitutes tax fraud - obviously it's harder to prove if you were paid in cash, but not reporting tips is no less illegal than sticking your paws into the cash register at the post office when the clerk turns her head. |
It's illegal but I've never in my life met a server or bartender who reported all their cash tips earnings. (And I've never met or ever heard about anyone who got caught and punished for it.) Waitresses and bartenders make bank. They make crazy amounts of money (which for them is tax free). |
Yeah you're right that I'm sure a lot don't. I'm all for taking advantage of whatever tax breaks you can, but one thing I won't ever do is lie on my tax returns. It's not truly tax free, it's only tax free if you're comfortable with committing tax fraud - I realize people take a cavalier attitude about it, but in my opinion it's a pretty serious thing, as you're effectively stealing from your fellow taxpayers. |
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World Traveler
Joined: 29 May 2009
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| Posted: Sun Jan 12, 2014 12:50 am Post subject: |
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| Yes, it is dishonest, but EVERY hot babe I know working as a bartender and server do it and all get away with it. |
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World Traveler
Joined: 29 May 2009
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| Posted: Sun Jan 12, 2014 12:52 am Post subject: |
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| edwardcatflap wrote: |
| Quote: |
| Waitresses and bartenders make bank. They make crazy amounts of money (which for them is tax free). |
IN AMERICA. There are other countries in the world you know, where you don't have to pay someone just to bring you a drink/meal. |
Correct. I spoke about the U.S. because the title of this thread is 'America's Wage Crisis'. Creeper1 (probably a Brit) posted a link to try to convince us about how bad things are in America. |
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KimchiNinja
Joined: 01 May 2012
Location: Gangnam
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| Posted: Sun Jan 12, 2014 6:14 am Post subject: |
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I guess it's really all about income inequality in the USA.
You manipulate labor by holding their wages the same or decreasing real wages, break unions, encourage them to work more hours, encourage women to work, while simultaneously raising the prices of goods and services. And you distribute propaganda to get the exploited masses to actually support the people/concepts that exploit them ("free markets", republicans, the "American dream", etc). Squeeze the masses, increase profits which get routed to "the 1%". Deepening income inequality is what results.
Still Americans are so ignorant of the scam being perpetrated on them, and so unemployable, it's hard to feel sorry for them. |
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World Traveler
Joined: 29 May 2009
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| Posted: Sun Jan 12, 2014 6:27 am Post subject: |
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| KN, you're in the upper 1%, no? ($_$) |
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KimchiNinja
Joined: 01 May 2012
Location: Gangnam
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| Posted: Sun Jan 12, 2014 6:24 pm Post subject: |
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| World Traveler wrote: |
| KN, you're in the upper 1%, no? ($_$) |
Ha, no I don't think I qualify yet.
The 99th percentile based on income is $500,000 USD / year. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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World Traveler
Joined: 29 May 2009
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| Posted: Thu Jan 16, 2014 6:05 pm Post subject: |
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| Since bartenders, waitresses, etc. are expected to share tips in some cases, that's even more incentive to pocket (underreport/be dishonest about the amount picked up off the table or counter). I know and have known people in the service industry. It's very common. A huge amount of income is going unclaimed. |
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World Traveler
Joined: 29 May 2009
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| Posted: Thu Jan 16, 2014 6:15 pm Post subject: |
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"According to 1998 IRS estimates, fewer than 40% of all tips received were reported, an estimated $9–$12 billion in unreported income. The issue of unreported tip income is inherently troublesome because tips are often in cash and subject to self-reporting."
http://www.nysscpa.org/cpajournal/2006/1206/essentials/p30.htm |
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