Re: PDT 2/2 : Why has tipping increased?
One possible explanation is that the IRS has gotten much more effective at taxing tips. In the old days, a tip of 10-15% went 100% in the server's pocket. Only a very small fraction of tips were reported as income. Now that the IRS requires employers to impute tip income to servers, a tip of 20% probably leaves the waiter with the same income after tax that they used to get.
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