Tip creep is becoming increasingly prevalent in American culture. Businesses encourage tipping as a method to keep labor costs down while ensuring productivity. Tipping can feel justified for exceptional service, such as friendly customer interactions, but unnecessary when related to minimal service tasks. The "Big, Beautiful Bill" allows tipped workers to exempt the first $25,000 of their annual tips from income taxes, leading to an increase in tipping expectations by employers, blurring the lines of appropriate tipping situations.
The "Big, Beautiful Bill" exempts the first $25,000 of a qualifying worker's annual tips from income taxes, prompting employers to encourage tips more aggressively.
For some, tipping is appropriate for exceptional service, as in the case of a friendly and knowledgeable tour guide, while it feels unnecessary for minimal service.
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