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The Ramsey Show

Has Tipping Become “Entitlement Tax”? (Hour 2)

21 Jun 2023

Transcription

Transcript generated automatically by AI and may contain errors.

Chapter 1: Has tipping become an entitlement tax?

29.798 - 49.799 George Campbell

Live from the headquarters of Ramsey Solutions, broadcasting from the Pods Moving and Storage Studio, it's The Ramsey Show, where we help people build wealth, do work that they love, and create amazing relationships. I'm George Campbell joined by bestselling author Ken Coleman this hour. It's a free call at 888-825-5225.

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49.879 - 69.378 George Campbell

If you've got that lingering question, you're just not sure you're tired of just Googling and hoping we hope to give you some good advice on this show, whether it's about your money, your work life, or something else in between. We're just maybe some relationship advice. Ken's got a lot of wisdom in that arena. That's for sure.

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69.398 - 88.324 Ken Coleman

I've been married a long time. I will say this. I, uh, I don't ask for it, but I do enjoy the occasional dating relationship advice situation because I like to get right down to brass tacks. He's seen it all, folks. Boy, haven't I? I'll tell you what I'm seeing more of that we want to talk about here because it affects our listeners' and viewers' pocketbooks. What's that?

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Chapter 2: What should I consider when deciding whether to stay at my job?

88.464 - 97.116 Ken Coleman

I'm going to tell you what it is. I've coined a phrase, George. I've coined a phrase for it. Okay. You know what it's called? What's that? The compensation tax.

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97.096 - 123.444 Ken Coleman

oh let me tell you what this looks like you show up to a coffee shop in my neighborhood the other day i ordered myself a cuban to go nice choice by the way i'm getting ready to pay what happens the young man behind the counter with a little bit of entitlement i might add as i'm paying flips the screen around or i'm ready to pay flips it around and says uh Here's where you're paying tips, sir.

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124.345 - 137.701 Ken Coleman

And I think to myself, now it's expected that I tip. I'm tipping at restaurants, which is normal. Now we're tipping everywhere. Everywhere you go. Everywhere you go. There's an iPad involved.

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Chapter 3: Is it wise to sell my car to pay off debt quickly?

137.881 - 139.823 Ken Coleman

There's an iPad. You got a tip option.

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140.103 - 144.068 George Campbell

I just say no thank you to the iPad. I go, don't turn that around. I don't want to know. It's your business, not mine.

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144.168 - 164.083 Ken Coleman

I didn't get that confrontational. I just went with the, I paid and I didn't do a tip. And I'm going to tell you what it is. These small business people, business people in general, are getting smart. And you got inflation happening to them in the form of they're having to pay higher wages. So you know what they're doing? They're adding a compensation tax for us. That's what I'm calling it.

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164.544 - 166.708 Ken Coleman

And our little tip helps them

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Chapter 4: Which mortgage should I prioritize paying off first?

166.925 - 179.359 Ken Coleman

Juice the hourly wage. Yeah, I don't have to give them a raise if I can just get the customers to give more tips. But see, there was no email. There was no sign on the door that explained this. Just one day, you started getting prompted to tip where you didn't tip before.

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179.499 - 180.3 George Campbell

Yes.

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180.32 - 186.848 Ken Coleman

And if you're not serving me, taking my order, multiple trips for multiple drinks, I'm not tipping you.

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186.948 - 193.455 George Campbell

If I'm standing up and you're asking me for a tip, it's over. This better be a sit-down, lay-down situation if you're wanting a tip from me.

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193.52 - 217.705 Ken Coleman

you know yeah the barbershop the massage the restaurant if i'm standing i'm doing the work right now right you know what i mean i you know i appreciate i won't stand for this thank you you put your foot down full seinfeld there there you go but let me just say this though this is a thing and i'm just pointing it out you and i agree it's okay to not tip in that situation yes not a restaurant a waiter situation but just it's a transaction across the counter now if you want to tip

217.82 - 222.169 Ken Coleman

Fine. But don't throw the hate at George and I because we don't feel like we got a tip in that situation.

222.189 - 230.466 George Campbell

I won't stand for it. And I actually, this is funny you mentioned this, I just released a video on my new YouTube channel about when you should and shouldn't tip. And I made it very clear.

Chapter 5: How can I navigate career regrets and find a new path?

230.506 - 231.448 Ken Coleman

Okay, lay it out for us.

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231.488 - 249.248 George Campbell

My stance for it. Did we cover everything? I gave you a taste. This is a tease to go watch the video. Oh, you don't want to give it away. But a follower on Instagram just sent me this, Ken, and I think you'll appreciate it. Oh, yeah, the guys have a picture of this. Put this up on the screen for those that are watching. This is a sign that's at the register at a Jets pizza somewhere in America.

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249.268 - 250.732 Ken Coleman

I do like, by the way, some Jets.

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251.413 - 258.667 George Campbell

I'm going to read it to you, Ken. Tips are no longer accepted. Thank you to all of our extraordinarily generous customers. We are here because of you.

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Chapter 6: What advice is there for budgeting and financial planning?

259.048 - 269.164 George Campbell

Rest assured, in lieu of tips, we are increasing the compensation of all our team members. We look forward to continuing to provide the best possible customer service. Thank you from your Jets Pizza team.

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270.426 - 281.683 Ken Coleman

That's good leadership. It's good leadership. Now, I'm assuming this is referring to pickup. And take out. Sure. Yeah. If they're delivering pizza, you should be tipping. You should be tipping. I want to stipulate. Okay, good.

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282.024 - 290.316 George Campbell

But if you're picking up the pizza and then they spin around the iPad, I don't want to deal with that. I drove all the way here to pick up the pizza so I didn't have to pay the delivery fee and tip.

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Chapter 7: What role does inflation play in tipping expectations?

290.336 - 301.332 George Campbell

I like it, George. I like it. So there you go. That's the move I think more business owners need to do is put the sign out there and say, not only are they not expected, but they're not even accepted.

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301.612 - 319.011 Ken Coleman

Yeah. Yeah. And by the way, this has fundamental economic impact here. When you start talking about putting an extra tip on where customers aren't used to tipping, that's real inflation to them. And you're trying to do it. You're socking it to your customer. Because of the wages you want to pay, or maybe you're trying to juice your profits.

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319.952 - 322.856 Ken Coleman

And I think there's going to be a lot of snapback on this kickback.

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323.156 - 323.536 Bruno Satin

Agreed.

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323.736 - 328.542 Ken Coleman

And that's why this sign is existing. Jets is seeing a competitive advantage for taking that position.

Chapter 8: How can I balance my financial goals with career changes?

328.622 - 329.563 Ken Coleman

So there you go.

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329.583 - 346.603 George Campbell

And I would want to give my business to those kinds of business owners who are doing those things. And this is not, you know, people come at us, Ken, and they go, wow, I can't believe these guys are so stingy. They don't want to be generous. This has nothing to do with generosity. Absolutely be generous whenever you can in all situations. It's a tax.

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346.623 - 359.06 George Campbell

But this idea of I'm going to socially have a socially awkward moment where I spin around the iPad and the employees don't want to do that either. They always go, it's got a question for you. I don't know what the question is. They feel awkward too.

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359.501 - 382.692 Ken Coleman

And hey, while we're on the subject, folks, when you go out to eat at a restaurant, check the bill. Because a lot of restaurants are socking in an extra fee that has nothing to do with taxes, state and local taxes. And I'll have the manager come out and go, talk to him about this. What is this? What is this thing you've stuck here on the bill that's not tax-related and it's not the tip line?

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382.672 - 388.16 Ken Coleman

Watch out for it. Look at your bill. You'll see it. I have them out there going, you didn't tell me about this when I walked in.

388.5 - 404.824 George Campbell

That's a good point. Check your receipts. And it's okay to ask and say, hey, I got billed for this. I don't know what it is. That happened to me at a restaurant, and it said health tax. And I was like, whose health? My health? I found out we are subsidizing the health care for the employees so the business owners don't have to.

406.166 - 425.088 Ken Coleman

I don't think that's fair. Let me tell you what I don't have to do, folks. I do not have to pay a tax. that some politician didn't pass. So you can put it on the bill, but unless Congress or state and local government passed it, take this tax and shove it. You know what I'm saying? There you go. Just crumple that little receipt up and give me a new one.

425.128 - 430.774 George Campbell

The normal way to do it is you raise prices, and if the customer no longer wants to pay those prices, they'll do business elsewhere.

431.015 - 439.324 Ken Coleman

And that is the obligation and the right of any business person. Go for it. Let's see if it works, but don't hit me with the old guilt trip tip.

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