It's taken directly off the top, so it will be from their highest bracket. And that money is used to directly work against the interests of said waiter, funding NSA datamining, drug persecution, worldwide war and mayhem, etc. So in a sense, it should be counted twice.
You're sounding almost like you've never gotten a paycheck. No, it won't be from the highest bracket. Waiters aren't in some bizarre class of people that don't get marginal tax rates. Any competent payroll company will estimate the final tax rate, and the number of deductions can be adjusted to fix it if your return is overly high each year.
That money is also used to educate their children, build the roads and bridges they drive on, and in the case of generally lower-income waiters, might well help with food and medical care.
I don't like the things you highlight, but pretending taxation offers zero benefits to anyone is silly.
Clarified my comment by editing it to "their" highest bracket. If they lower their taxable income by $10, that is where it comes from, yes?
The benefits you describe mainly come from state and local taxes, and they'll still be paying property taxes (directly or through rent). Except if you want to talk about disenfranchising federal subsidies - yet another example of their interests being undermined.
The problem is that with no way to opt out of supporting just the blatantly harmful facets of government, the beneficial aspects are held over one's head any time they talk about reducing funding. Witness the local appeal to underfunded teachers every time residents balk at raising property taxes, while newly created functions continue unhindered. The only winning move is to reject the skewed compromise.
Back in my high school days, I worked at a restaurant as a waiter (cough "server", being more polite/correct), and always hoped people would leave the tip in cash.
You had the option at the end of the shift to punch in a total for your claimed tips. There are pro's and cons to claiming cash tips -- Pro's being it keeps your actual income on the books, making you more attractive for loans/financing. Con's are you get taxed more.
You get the money either way at the end of the night, but the tax man was not kind to you at year's end with all those claimed tips.
