I agree 100%. Most people who tip will tip with even paper money. So, as Whitey said, a beer is 2 bucks, i will hand the bartender 3 bucks and tell him/her to keep it(or i will leave a buck on the endge of the bar or tip glass. If that beer was $2.20, i am still handing over the 3 bucks, or putting the change on the bar or tip glass. Now this scenario isn’t going to be the same all the time, but it will be often enough that it will hurt people working their ass off just trying to make a buck.
This shit is typical of politicians…they just LOVE to tax alchohol and tobacco. They will keep right on doing it until people bitch long and loud and/or vote the pricks out.
BTW, Darkstar is right on the money about Ron Paul. Here is an exerpt from his website:
I have introduced H.R. 3664 in Congress to end this problem. The Tax Free Tips Act of 2007 will exempt tips from federal income and payroll taxes. Ending taxes on tips will give workers an immediate pay raise, letting them keep more money to put toward things like a house or car payment, their retirement, or their own and/or their children’s education.
When you give someone a tip, you should not have to simultaneously tip the federal government.