Personal Finance 

Always Tip With Cash

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Whenever possible and convenient, I try to tip with cash. When you tip with a credit card, there is an electronic paper record of the amount you tipped for service. When it comes time to report earnings at the end of the year, all of that tip is counted towards the earnings of that individual. When you tip with cash, there is no such paper trail and it is the individual’s own responsibility to declare how much they’ve earned in tips.

Ask any waiter or waitress about how they treat tips and, if they’re honest, you’ll get one response – they don’t report all their tips. When you’re making a piddly $2 per hour in salary and live off tips, you’ll find that cash “disappears.” (though it would be impossible to prove this) But honestly, these individuals work their butts off for a small payoff and they can would appreciate all the help they can get. So, if you’re the type that tips big because you understand how hard it is to be a server, hook them up by using cash – it’ll invisibly bump your tip percentage up a few points.

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52 Responses to “Always Tip With Cash”

  1. Tax on personal Income has two very distinct manifestations:
    1. State income tax
    2. Federal income tax

    State income taxes are voluntary because US citizens are free to choose what state they live in.

    Federal income taxes are immoral. Federal income taxes are a form of control and oppression.

    I make no assumptions about the intentions or the behavior of wait staff. I feel it is the duty of every US citizen to pay as little Federal income tax as possible. How much of their personal liberty they are willing to place in jeopardy in this effort is a choice for every individual to make on their own. Just like Rosa Parks and MLK, opposing unjust and immoral laws is a right and a duty. Obeying immoral and oppressive laws is for sheep not for human beings.

    I tip in cash because I see a difference between the tab and the tip. The tab is an impersonal transaction with business. Tipping is a personal transaction with an individual.

    It doesn’t matter to me if the server sees the transaction the same way. My actions are not determined by how I intuit another person may react to them.
    -Jahfre Fire Eater

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