But it does hit the tax roles. They have to pay an estimated tip tax on their receipts. The IRS takes it whether they receive it, or not.
>>But it does hit the tax roles. They have to pay an estimated tip tax on their receipts. The IRS takes it whether they receive it, or not.<<
If, by some chance, they are over the amount that is taxed anyway, mine won’t be included.
My nephew delivers pizza as a second job to support his wife and four kids. He told me to tip in cash so I do.
So that translates to tips paid by credit card being reported, tips paid in cash not. And I don't have a problem with that. One good thing to come out of the infamous "contract with America" is IRS has to prove willful tax evasion, and they don't have enough people to spook on all the restaurant workers.
That said, if they are hogging cash income and pulling in EIC and other redistributive credits then I have a problem (thanks to five Republican Presidents, one Democrat - for allowing the creation and expansion of this communist program).
But at the front end I expect reasonably good service and I know those giving it expect to be tipped in return. It is almost perfectly capitalistic - and why a Free-Stater wouldn't understand that is beyond me.