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'Automatic tips' not really tips, Chicago Tribune argues

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Should customers be forced to tip in restaurants? That’s the question the Chicago Tribune asked and answered with a resounding “no.”

In a recent editorial, the Tribune argued that patrons shouldn’t be required to pay automatic gratuities. The paper says requiring customers to tip means it’s no longer really a “tip” - it’s a flat charge that doesn’t allow a customer to determine how much the service was worth.

The IRS tends to agree. Starting in January, the IRS will begin taxing “automatic gratuities” as wages, not as tips. This has led some restaurants, including Red Lobster and Olive Garden, to drop automatic charges.

READ MORE at The Chicago Tribune.

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