Tag Archives: Restaurant

Tipping is Taxes at best Stealing at Worst

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Tipping is taxes

I just read an interesting article about how little restaurant workers are paid and it reminded me that tipping is taxes. I’m not certain exactly how tipping at restaurant became ubiquitous in the United States but I suspect it was nefarious from the beginning.

The article in question details how a waitress at a restaurant got a paycheck for $9.28 after working for seventy hours. That’s quite a bit below what the government considers her lowest possible wage of $2.13 an hour but apparently taxes reduced her paycheck from $150.81 to the aforementioned amount. She posted the article to illustrate why you should tip your waitstaff when dining out. I have a different take.

Tipping is Taxes on you

When you tip, you are paying a tax. The tax is simply the restaurant’s way of charging you less for the food up front by paying their employees ridiculously low wages. The wages for restaurant employees are so low that no one would do the job if it wasn’t for tips. Working for that pathetic a wage is simply not a feasible alternative.

At some point someone got the idea we should tip restaurant workers. As I said, I suspect it was a restaurant owner who simply didn’t want to pay workers a reasonable wage. We think of tipping as a way to compliment the staff for their service but it is merely a tax, and a big one at that. One the state and community doesn’t track. Every time you pay twenty percent extra, or more, for dining out, you are paying a tax.

You Pay Taxes on the Food Too!

Not only do you pay a tax to cover the cost of employing the staff but you also pay the government a tax to eat the food. The restaurant owner forces you to pay for their staff and then the government swoops in and gets a cut as well.

I’ve written before that I’m not opposed to taxes altogether. The government collected money from citizens to build the roads leading to the restaurant and to create the infrastructure bringing utilities to the restaurant. I don’t mind this, that’s all well and good. What I mind is paying the staff. That’s the job of the restaurant. Do I tip when I shop anywhere else?

Not only is Tipping Taxes but it’s Essentially Theft

Basically, the restaurant is stealing from the employee every time the total income is less than what the market would bear if wages were based on work rather than tips. It’s the restaurant’s way of not paying their employees.

When tips exceed the normal payment of such an employee then the restaurant is stealing from you. You are essentially overpaying the staff for the food you got. That is a determination that belongs solely to the employer, not the customer.

Stop Tipping and Start Paying a Competitive Wage

People get all angry when a new tax is floated by the government but we pay a huge rate for simply sitting down to eat food.

Naturally, if restaurants pay a fair wage to keep good employees, the cost of eating at the restaurant will go up. That’s the price of doing business. You pay your employees their worth and if you still make a profit, you stay in business. That’s capitalism.

Conclusion

Tipping is not capitalism, it’s a tax. It’s not even a stealthy, hidden tax that we don’t notice. We all know about it. Many of us pay it although some people don’t tip at all. I don’t think anyone should tip. Pay your employees their worth and charge me accordingly.

Tom Liberman

Can you Ban your Cake and Eat it Too?

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Cake

I just read an interesting article about a restaurant that charges a fee to bring your own cake. It’s tearing up the internet and it gives me a chance to focus on my Libertarian ideology for the first time in a while.

The question is fairly basic. A restaurant doesn’t want you bringing your own cake, food, or beverages to consume. Almost all restaurants have a corkage fee for bringing in your own wine and no one really has a problem with this. The fee in question at the unnamed London restaurant was £10 per person at the table. It was a birthday celebration with a dozen people and I’ll leave the math to you.

In any case, my question today is if the fee is justified.

£120 for a Cake

The sticking point largely seems to be the high price for the cake. Most people seem to agree that some fee is in order but a great deal of debate on the amount is raging. The price does seem rather high to me but, that being said, it is replacing twelve desserts. I can easily see each dessert running around that individual price.

In other words, I absolutely see both sides of the argument. I do understand the restaurant is out the price of all those desserts but, on the other hand, they’ve made a tidy profit on the rest of the dinner. A table of twelve at a celebration is certainly going to eat a lot of food with appetizers, mains, and drinks. Is it worth it to alienate good customers with such a policy?

The Internet is Divided

Based on the comments I read, the internet seems fairly divided on the topic. I certainly understand both points of view as I mentioned. However, this is where my Libertarian ideology turns such conundrums from difficult to simple.

While most of the commenters put forward various arguments in support of the restaurant and against it, my answer is easy and came to me even before I finished the article. I’m sure most of you loyal readers already know exactly what I’m going to write.

The Libertarian Cake Answer

The restaurant is well within their rights to charge an extra fee for bringing a cake onto the premises and substituting it for desserts ordered on site. The customer is equally within their rights to resent the fee and refuse to eat at the restaurant again, cake or not.

That’s where life gets pretty simple for a Libertarian. It’s clearly not a situation in which the government should intervene although I suspect a bi-partisan panel of “conservatives” and “liberals” will introduce legislation to ban charges for bringing your own cake. They will tout the legislation as common sense and good for the children who get to eat the cake. Afterall, we must protect the children!

Conclusion

Putting aside the sarcasm for a moment, though it pains me; if the restaurant wants to charge whatever amount for bringing your own cake, that’s their business. If the customers decide they’d rather eat somewhere else, that’s their prerogative as well.

That is all. Continue with your daily lives and don’t forget to stop and taste the cake.

Tom Liberman