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Originally Posted by WillyPete
So the government automatically taxes a restaurant for money made from tips?
I'll never put it on the receipt again....
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Here, they tax on 8% of the total bill. If you tip 15% and the restaurant takes half of the tip (for busboy, chef, etc.) they're getting taxed on more than they're making. For this reason, I tip 18% minimum unless I was displeased with the service. I've tipped as much as 30% when I made them do a lot of extra work and they did it with a smile.