New tax on tips has waiters saying it will erase the incentive for extra work for better tips
8:45 AM, Sep 13, 2013
The way waitresses earn a living could soon change because of recent taxes on tips.
Legally servers are required to earn $2.13, much less than the normal minimum wage. This is because tips act as an incentive to serve better to earn more money.
The IRS will start taxing automatic tips, money added to a bill normally on parties of eight or more. The new tax makes waitresses believe it will destroy the incentive because they work harder to ensure better tips.
The new tax on tips will start in January, but servers say they don't see tipping disappearing anytime soon.