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Fair Pay for Servers: Does America's Tipping Model Need an Overhaul?

Politics

June 26, 2025

The practice of tipping is a debated topic.

But why is the system set up this way? So employers have the chance to stack up for themselves as much money as possible, without being expected to provide their employees a livable wage? The sympathetic (or pressured) customer will do that for them!

Or is it a simple gesture of generosity the customer perhaps should partake in without complaint for having someone at their beck and call for an hour or two?

Well, that depends on who you ask.

And on where whomever you asked lives.

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A Uniquely American Phenomenon?

In countries such as Japan, Australia, Denmark, and others, tipping is not an expectation, but is fully optional. Servers are paid wages where tips are not required to survive.

Meanwhile, in America, $2.13 per hour is the federal minimum wage for tipped employees.

Tips are anticipated to be the meat of the average bartender's, performer's or waiter's paycheck.

More and more Americans are fed up with the country's tipping culture.

According to a survey ran by WalletHub, almost 9 in 10 Americans believe tipping culture has gone too far, and 3 out of 5 feel businesses are replacing employer paid salaries with tips.

So when President Donald Trump's "no tax on tips" campaign promise passed the Senate unanimously, reactions were diverse.

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Beneficial or Inefficient?

Both Democratic and Republican politicians have praised the bill.

Jacky Rosen, Nevada's Democratic Junior Senator, and Republican Texan Senator Ted Cruz are prominent supporters of the initiative. The National Restaurant Association (which represents over 380,000 food establishments) praised the decision as well.

Yet, there has also been backlash.

The Independent Restaurant Coalition, which, according to their website, "emerged to advocate for the survival and long-term success of independent restaurants and bars across the United States," is one of these vocal opponents.

According to ABC News,

"The Independent Restaurant Coalition, which represents nearly 100,000 restaurants and bars, has appealed to Congress to reconsider the proposal...Even some workers who rely on tips say they oppose making them tax-deductible."

Cassie S.
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Writer since Oct, 2022 · 20 published articles

Cassie is a passionate writer. When her pen isn't on the paper, she enjoys listening to music, spending time with friends, and going for long night drives. You can catch her at your local concert venue rocking out to her favorite artists. Cassandra also loves to read any book in the thriller or mystery genre. If you give her a suggestion, she'll be at her local library the next day. She also loves to sing, explore, and travel!

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