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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Personal Finance / Macroeconomic Trends & Risks
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Author: Steve203 ⎊❂🐝 HONORARY
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Number: of 4582 
Subject: Re: can't pay a penny for a thought
Date: 11/02/25 9:49 AM
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I see this continuing given the lack of federal tax on tips.

Recall a reg that went into effect in, iirc, 2020, allows the "JC" to pool the tip money, and skim some off to pay the cooks and other back room staff, rather than paying those people a competitive wage out of the "JC's" pocket. The subsequent administration rolled that reg back, but I would expect it to return. Hence, the incentive to have servers work for tips, so the "JC" receives more subsidy money for his back room payroll.

Press Releases • By Heidi Shierholz • December 22, 2020

Today, the Trump administration finalized a regulation on tips that gives employers of tipped workers a loophole allowing them to capture more than $700 million annually from workers.


epi.org - Trump administration finalizes regulation that will cost tipped workers more than million annually

Steve...Nomex long johns at the ready
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