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Tipping isn't going away just because waitstaff make minimum wage. It's too ingrained in the culture. As evidence tipping still exists and hasn't declined in the areas where those laws are already in effect.

I'm sure there are bartenders making 6 figures, but according to the BLS, the 90th percentile make $40k with tips.

The median pay is $10. That's lower than minimum wage in a lot of places, so I doubt that many bartenders are against minimum wage before tips (none of the ones I know are).



I can see a reason why receivers of cash tips would not be honest with how much they earn, especially to the government.


I'm sure that makes a small difference, but I doubt it's enough to meaningfully change the conclusion.

1. The BLS knows this, so they get their data from multiple services--not just government agencies.

2. The IRS knows this, so are more likely to audit people who work in industries that receive tip income.

3. If the BLS numbers were vastly underestimating bartender income because of unreported cash tips, you would expect bartender income to have risen much faster than other similar low wage jobs over the last 20 years as cash has become less common. This hasn't happened.


every bartender and server i know vastly underreports their income - makes 80,000 a year canadian in reality but reports 50,000


For a server to underreport 40% of their income they would need to be making a good bit more than that in cash. Especially when you consider that they are making some money hourly as well.

I find it highly unlikely that a server is making anywhere near 60% or so of their tips in cash these days.

Maybe there are a few locations with that high of a mix of cash, but not enough for that to be anywhere near normal.




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