I wrote this as a reply to another article here but felt that maybe it might warrant it's own thread...
In the other article a libertarian gave a Tip to a Waitress and Explained that taxation is "theft" and he was not giving her a "Tip", but giving her a "Gift", and therefore constitutionally not subject to taxation...
Technically the libertarian is right, Taxation is theft in this particular case and occupation. And gratuities are "gifts" and not to be taxed based on constitutional law. In fact there are legal restrictions that control how much a year you are allowed to "Gift" someone like a child when giving large value gifts such as real property. This is because they do know they are indeed not allowed to tax it so they want to control how much they might lose as a result of this gift transfer in other revenue mandates. They are hoping you might die before you can give the whole thing to your child. If you die then they have legal right to stick their hands back in to control and tax the remaining balance of the transfer. They know that no taxes can be legally collected once the whole "Gift" transfer has been completed and documented. So they delay it.
First Taxation does become theft when you are forced to pay it and then they spend it on something you have strong personal moral opposition against. like say War, Grants for very stupid science studies, The hiring of more Fed employees when they are totally unneeded, or in Trump’s case wanting to build a base on the moon. In fact even the IRS has language to this effect in the laws supporting moral opposition, but you will probably lose trying to prove your position in court someday if you don’t pay. Except if you might present a strong case as being a "recognized" minister of an "acceptable" religion…maybe.
But let’s look at the unique occupation of being a waiter or waitress because it is a great example of failed socialism. First there are special laws allowing employers to pay these folks less an hour to begin with. They are not made to pay the minimum wage to this particular unique occupation because they do collect tips and this is supposed to make up the difference. Originally tipping was designed to reward someone for their own personal efforts and merit in a job well done making the customers happy and come back to support the establishment.
They are the individuals who can either make or break a business based on their own personal efforts and interactions with customers. They are the "Customer service" experts and managers for establishments like this. Well that is until the government started taxing tips. Once tips started to be taxed, a new situation arose in this line of work. The employer’s new responsibility of recording, accounting for, and reporting taxes on tips placed both employer and employees into an accounting mess because some received more than others based on personal efforts and merits.
This caused the bookwork to become a nightmare in trying to keep track of this on an individual by individual basis concerning the different amounts of tips earned per employee. So both employers and employees were forced to hatch a plan and compromise to make this easier for both parties. But the outcome ended up not being good for the employers, the employees and especially the customer’s enjoyment, service, and experience in being a patron to these establishments. It became an "Income equality and equal entitlement" situation without choice which even added some additional extortion in the mix.
No longer were personal individual efforts, service and character being rewarded on individual merit. They were now forced to "pool" their tips and then distribute these "equally" among the waitresses whether some of them deserved it or not just so that it was easier for the bookkeepers. It became a situation based on a socialistic ideal. When the cooks saw this "equal" situation they felt left out of this example of equal distribution, they felt that they should have a piece of the pie also. Because they had the power to put out bad food if they wanted to do so and in turn hurt the amount of tips Waitresses might receive, they extorted themselves right into a portion of the pie, earned or not.
Now one would think that maybe the cooks might actually deserve a piece of the pie because the food also counts in customer service but consider this fact. The cooks were already being paid quite a bit more an hour because cooks normally do not get tips. Their higher base pay is to make up for this fact. Now the cooks make more an hour than the waitresses and are being paid an additional equal share of the tips. Then the busboy/dishwashers jumped in and also exercised the same extortion tactics against the waitresses and the cooks to claim their piece of the pie too. Then came the receptionists and hostesses in suit.
So now we have a socialistic environment where all the tips are equally divided between four or more job titles even though some within the collective have not earned or deserve an equal share based on personal efforts or merit. In the meantime the waiters and waitresses are still making less an hour base pay than the rest even the dishwasher. On top of this they now have to receive a reduced income in tips at the same time and these are now taxed on top of it all. This gives them a sour taste in their mouths and causes them to take less pride in their job and personal effort to provide good customer service. This in turn hurts the reputation of the establishment it’s self.
The situation is totally counter productive to say the least. It’s a total fail for everyone involved especially the end customer who is forking out good money to receive good service. I took careful observations of this new situation as it unfolded after tips started to be taxed. If you wonder why waitresses are sometimes rude and throw the food at you, this is why. It was once not this way, This is the example and result of true outcome when socialism is implemented. It works the same no matter where it is applied.
On top of it all, this decision to tax tips has also very greatly damaged the restaurant industry and the economy in whole. These losses far far outweigh the amount collected in taxing tips. It was a very poor and counter productive decision that is indeed, by all legal standards, unconstitutional.