this post was submitted on 27 Jun 2026
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And is $7.25 a livable wage in Atlanta?
Not even slightly.
But that doesn't mean it should be the customer's job to make up for the employer's abuse.
It's built into the price of the meal. It's more systemic than making the customer pay the wait staff. The profit margins on food are razor-thin, despite "offloading" wait staff salary and no one in the restaurant getting healthcare. If you're not going to tip, then don't go out to eat. Going out and not tipping exclusively hurts the staff.
Staying in hurts them more when their place of business closes down due to lack of customers.
How tf am I supposed to know if their minimum wage is implemented properly
Functionally no, there are a handful of restaurants in places like NYC and LA that have tried it, but part of the problem is that the servers want tips as well (you're gonna have a hard time getting rid of something which the people being affected want).
I said this elsewhere, but any job can ask for tips but that doesn't mean they're making the $2 minimum wage. The cashier at McDonalds and the Barista at Starbucks are making minimum wage. In most cities those positions are making more than minimum wage because of market competition (Ziprecruiter says that the average McDonalds employee in Atlanta makes $12/hour, not that that's a living wage either).
People who are making the $2 minimum wage generally make a lot more than that, and more than the McDonalds or Starbucks employee, because of tips. Tips are generally tax free, the positions are low skill, and if you don't like this type of work or pay you'll generally leave pretty quickly so the position is self selecting.
Here's the math for two situations: 1.) You're a bartender at a lunch pub with 12 spots at your bar, your shift is 10 am - 5 pm, you open at 11 and you'll have on average 50% of the spots taken every 30 min. 7hr x 12 spots x 50% x 2 per hour = 72 customers. The average order will be between $15 - $30 with tip being $2.25 - $4.50 or $3.375 average. So 72 customers x $3.375 + $2 x 7 hours = $257/day x 5 days = $1,285 per week on average. Of that, you only pay taxes on $70 worth.
2.) You're a waiter at an Outback Steakhouse, you have 5 tables, your shift is from 3 pm - 10 pm, you're only really getting business from ~4 - 10 pm. During those hours your tables are 3/4 full and flipping every 45 minutes. 5 tables x 6 hours x 0.75 amount full x 3/2 flip rate = 33.75 customers. On average they are spending $50 - $100 each with tips of $7.50 - $15, average $11.25. So 33.75 customers x $11.25 + 7 hrs x $2/hr = $393.68/day x 5 days = $1968.40 per week on average. Again, you're only paying taxes on $70 worth.
Now, here's the catch, this is an average and assumes the location is very successful. You might instead have a Tuesday where it's raining and you made $60 because no one came in, but then Friday the football game is on and you made $500. Maybe this restaurant isn't pulling in customers so you're not getting that kind of traffic. On paper the job can look very appealing, but in practice it typically falls short of those numbers.
Mostly correct. You do have to pay taxes on tips that the government knows about, which means any credit card tips and reported cash tips (which can be lied about of course because there's no paper trail, but reporting $0 cash tips is highly suspicious).
Remember the whole "no taxes on tips" campaign that MAGA tried to use to get more working folks on their side? That's because much/most tips are taxed.
Oh I understand, but the no tax on tips thing did go through. Through 2028 you can deduct up to $25k in tips. You still have to pay payroll taxes, but you will get them back when you do your taxes.
And as someone who's spent much of my career in a tipped position, all tips should be taxed. All income should be taxed. It's what keeps society working.
Now, anyone in a tipped position should be taxed less, but we shouldn't be targeting the source of the income. Take two people; a server making $60k and a teacher making $60k. Both should be taxed less than they currently are (and billionaires taxed much much much more), but saying the server should pay less than the teacher because much of their income is tips is prioritizing the wrong thing in society. Eliminating tax on tips is wrong when the republicans proposed it, and it was wrong when democrats agreed. Lower the tax burden on lower brackets, and raise it on those in the much higher brackets. Don't target the source of the income.
I absolutely agree, especially because the primary income of the extremely wealthy (unrealized gains on stocks and such) isn't getting taxed properly either.
Why are you only paying taxes on $70 worth?
It's a bit of hyperbole, but it's not too far off of the truth. In the past you only paid taxes on tips you claimed, so if you got all your tips in cash you perhaps didn't claim them all (or maybe just enough to hit the minimum wage). If you got tips on credit or debit card then they were automatically counted. Last year they passed a rule that goes through 2028 in which you can deduct up to $25k of tips from your income. You still have to pay payroll taxes on those tips, but come tax time you can deduct up to $25k and get those taxes back. So if you made $60k including tips, maybe $10k of those tips were in cash, you can deduct $25k for tips and then the standard deduction is another $16k and you don't claim the $10k in cash. $60k - $25k - $16k - $10k = $9k in taxable income.