Fast-food tips instead of raises?

I've noticed in the past few months that fast-food establishments that never used to now have tip jars out for their grossly underpaid workers  to help managements  continue to avoid paying these people a  fair wage. A lot of this cash -- small amounts per worker -- will not be reported as taxable income, perhaps hurting state and federal finances over time. But then,  many rich folks are better than the poor at avoiding  taxes, at least as a  percentage  of their income. Warren Buffett likes to note this, though I don't see him  making many many charitable contributions to the U.S. Treasury.

Investment income is far better protected from the tax man than is earned income.

 

-- Robert Whitcomb

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