The U.S. tipping culture sets it apart from other countries, where tips rarely replace wages. President Trump's proposal to eliminate taxes on tips could further this divergence. Currently, the federal minimum wage for tipped workers is $2.13 per hour, while many countries have legislated minimum wage increases. In Canada, tipped workers mostly earn a minimum wage without considering tips, illustrating a stark contrast to U.S. practices. Saru Jayaraman emphasizes that relying on tips instead of wages is unique to the U.S., as many other nations view this concept as unreasonable.
"We continue to be the only country on Earth where tips replace wages completely. In most of the world, the idea of tips being a replacement for wages is absurd."
"Tipping culture in the United States has long made the country a global outlier - especially in cases where workers rely on tips for much of their income."
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