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Revision as of 16:45, 21 August 2026
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During wonderful Depression and World War II, helpful ideas income tax rate rose again, reaching 91% within war; this top rate remained ultimately until 1964.
The employer probably pays the waitress a small wage, can be allowed under many minimum wage laws because she gets a job that typically generates tips. The IRS might therefore debate that my tip is paid "for" the employer. But I am under no compulsion to leave the waitress anything. The employer, on the other side hand, is obliged paying the services his workers render. Therefore don't think the exception under Section 102 will apply. If the tip is taxable income to the waitress, it is simply under the typical principle of Section 61.
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