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Pros And Cons Of Tipping

813 Words4 Pages

If someone is buying a pair jeans for 50$, the cashier does not say, “That will be 40$ and you decide if the cobbler gets to eat tonight” This is an irrational practice that perfectly describes tipping. Right now, waiters/waitresses and Americans alike, probably hate hate people for even questioning the custom of tipping, but bear trough, by the time one finishes reading this essay, they will agree. Tipping is a custom we would be better without. Let us get something cleared up if one lives in America, tipping is a must, waiters/waitresses rely on tips to make a living and as long as that is true, tipping is a must. But just because this is the system we have, does not mean that it is a good system. Tipping shortchanges servers, Inconveniences customers, and makes the dining experience worse for everyone involved. …show more content…

People have tried on several occasions, but the restaurant industry has a lot to gain from actually doing this. According to Michael Lynn restaurants actually have plenty to benefit, including but not limited to; increasing profits, reducing transaction costs, reducing litigation, and reducing tax burdens (Lynn, 23-25). When Restaurants move the responsibility of paying the employees onto the consumers, they do not have to pay tax on employees because they are not paying them in anything but a small cash wage. Because they pay them in cash they bypass documenting Social Security and Medicare taxes (Department of the Treasury Internal Revenue Service, 2016). Also, because restaurantes pay employees directly in cash, they do not have to pay transaction fees to banks or credit card companies. These bypasses allow restaurant owners to make more profit. While this is clever, this is unfair to other businesses who pay all their dues to the government and further society while the restaurant owners cheat Uncle Sam but still reap the benefits of the government provided

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