John Oliver, host of Last Week Tonight, has taken aim at the tipping culture in the United States, describing it as out of control. The British comedian noted that three in four Americans believe tipping has gone too far, citing examples such as a mortgage company and an impound lot requesting tips.
Oliver highlighted that tipped workers can be paid as little as $2.13 an hour, a rate unchanged since 1991, and often insufficient to cover payroll taxes. He explained that employers are supposed to make up the difference to minimum wage through a tip credit, but the system is easy to cheat. Poverty rates are twice as high for tipped workers, and racial and gender biases affect tip amounts, with white, female, and conventionally attractive servers receiving more.
Donald Trump has proposed eliminating taxes on tips, but Oliver expressed concerns, noting that economists worry the policy would be haphazard and could be exploited by higher-income earners reclassifying wages as tips. He suggested eliminating the sub-minimum wage, as seven states have already done, though some servers fear customers would tip less. Oliver acknowledged that tipping is unlikely to disappear completely due to its cultural entrenchment.
