No tax on tips? Experts warn against bringing U.S. proposal to Canada.
No tax on tips? Experts warn against bringing U.S. proposal to Canada.
4 comments
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If your business cannot be profitable paying a living wage to your employees without tips or govt assistance,, then perhaps the business model itself is unsustainable.
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Instead of "no tax on tips", how about lower taxes on all low wages, including tips?
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Exactly, this isn't helping the lowest paid workers anyways as tipped workers are inherently making above minimum wage (except possibly in Quebec). Why should for example a construction labourer making $25/hr pay more in taxes than a server bringing in $100/day in tips (~$30/hr)? If we really want to help the lowest wage workers (and to a lesser extent, all working class) the personal exemption should be much closer to the annual income from full-time minimum wage work.
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Let's focus on things that don't dedicate us to a tip-based economy.
To my knowledge, the only change to tips we need is that if your tips are put into a pool to be spread amongst the staff, which is a common practice in restaurants so that the chefs and dishwashers get tips, then the owner can't include themself in the people to get paid from that pool.
I dated a girl for a while in Ottawa where the owner was taking a huge cut of her tips that way.