and service fees at restaurants. The price on the menu in Seattle or SF is ~25% lower than what the product actually costs.
Wait staff reading this: bosses at restaurants like this are stealing from you if that doesn’t go straight to you. I tip very well, but I’m not tipping twice. And yes, if it’s a “service charge”, that’s the same as saying “tip” from the customer’s perspective.
Wondering, is there already US places that works without tips like in most other places ? (Owner pays a decent salary to its employees, include that in all products they sell and don’t expect tips)
At the higher end, the labor market for waitstaff is competitive, and restaurant operators who have experimented with this have had trouble keeping server positions filled (with the opposite effect in the kitchen).
tip: 20%
tax: 8.625%
= total: 34.625%
edit: The best part is, if your employees don't use the money (maybe they don't know about it or don't have any health care expenses), the business can eventually reclaim it...
The restaurant association balked at this, and encouraged businesses to list out the increased cost as a separate line item on the receipt, instead of raising menu prices, basically raising a middle finger and saying "see what you idiots voted for, now you pay for it!" I don't know why I'd be mad that I have to pay for someone's health care. That's sort of how it works, doesn't it?
Since then, it has taken on a life of its own. Some places call it a health care surcharge. Others call it a SF surcharge, or a cost adjustment, or inflation fee. It's not a tax, it's not a service charge, it's not anything but whatever arbitrary number the business wants to charge without raising their menu price. And thus, it's taxable.