Tipping has gotten a bad rap lately, with many opinion pieces and commentary from left and right addressing tipping and, perhaps worse, the expectation of tipping.
The argument here is that critics are missing the point of the growing tipping culture, for reasons that, at least at first glance, have nothing to do with the link between money and service quality. The latter seems to be a given and explains why Americans tend to tip even in countries (think of England, for example) where tipping is not so much expected.
The real genius of tipping culture is its effect on the American mind: It makes people in tipping industries aware of how greedy the government is. Think about that. And when you think about it, consider why members, or especially those on the right, despise withholding so much: The theoretically quiet (and automatic) nature of this tax withholding eases the pain of paying taxes a little.
Conversely, imagine how government would be perceived and the cost it would incur if Americans had to send a check to city, state, and federal government every month or twice a month? Put another way, imagine how government would be perceived if workers had to think about what they owe the government once or twice a month, while also thinking about what they can and cannot spend given their debt?
Taxes are withheld from regular wages. Tips are added on top, meaning that tipped jobs pay more taxes on tips. Although these taxes are microscopic compared to what the rich pay, they can be considered an awakening of sorts.
Some will point out, not without reason, that low-income earners pay very little in taxes anyway. This is certainly true in relative terms, but as the joy of tippers over cash tips, which are easier to hide from the IRS, shows, taxes on tips are a burden.
Tipping is crucial, whether it’s in cash, by credit card, or through the kind of pad we use to pay in some stores. Every tip that isn’t given in cash reminds the recipients that there are businesses that consider themselves our partners when it comes to their income. And given how often those who receive tips actually get tips, they are reminded of the size and cost of government while working day and night.
Let’s look at all this in the light of the complaints about the progressiveness of the tax system that have been frequent for years. The not unreasonable view that the rich are taxed the most is that too many Americans, to varying degrees and in varying ways, do not feel the crushing tax burden. Only for the rise of the tipping culture to make it clear to everyone what an obnoxious partner the government is, always and everywhere.
This is just a reminder that tipping has an undeniable benefit: Not only does it make recipients constantly think about what they “owe” for their good service, but it also makes them wonder whether the tip could be higher if the recipients themselves were not so overwhelmed.
