Gracious gifts - Tipping considered obligation, not reward

Tipping is no longer a reward, it's expected. Today, more than 35 professions expect tips and the practice has become a $25 billion-plus industry in the United States.

Americans tip everyone from the person who carries their bags into the hotel room to the dog groomer.

Even though a large percentage of tips may never be reported, the Internal Revenue Service reported that gratuities have grown steadily during the 1990s, from $8.5 billion 1994 to more than $13 billion in 1999.

Of the more than 18 billion food and beverage workers receiving tips last year, only $8.3 billion was declared on federal taxes.

Americans, when using a credit card, tipped at an average rate of 14.6 percent over the past five years, but only 7.4 percent if they left cash.

Etiquette experts say a 15 percent gratuity is still the norm in most cities, whether you're paying for an anchovy pizza or lobster-and-steak dinner. But the average tip has hit 20 percent for some high-end services, and anything less than that in large cities may draw some scornful looks.

Michael Lynn, an associate professor of consumer behavior at Cornell University of Hotel Administration in New York, says tips could rise to as much as 30 percent in the future.

But even with a tipping increase, many tip earners are guilty of under-reporting their tips, according to statistics from the IRS.

The majority of tip recipients report only 50 percent of their gratuities, the IRS said. This means that at least $10 billion to $12 billion in tips goes unreported every year, making tips the second-biggest tax dodge in America.

To leave no tip at all in the United States is a vengeful gesture. In most restaurants, tipping will run from 15 to 20 percent.

"People will tip if they get good service," said Jerrianne Wyman. "We encourage our people to give good service."

Wyman and her husband, John, operate three restaurants in downtown Cape Girardeau. "For the most part, the tips run 15 to 20 percent," said Wyman.

Most of the servers at Brenda's Place receive tips in the 15 percent range, said owner Brenda Glueck.

"People who come in get to know their servers and are generous with their tips," said Glueck.

And, by all indications, a 15 percent to 20 percent tip is a good one. Experts say that when it comes to tipping, no hard-and-fast rules really exist.

In the case of Brenda's Place, customers have an opportunity to show extra appreciation during the holidays. "We have our money tree," said Glueck.

Every year Glueck installs the money or "tip" tree after Thanksgiving so customers can pin a tip to the tree.

"We gather in the money at Christmas and share it among the employees," said Glueck. "It usually amounts to about $60 to $75 each, and everybody appreciates it."

rowen@semissourian.com

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