Summary
Americans are increasingly tipping less as “tipping fatigue” sets in, driven by rising prices and higher suggested tip amounts. A recent survey found many consumers are cutting back across services, including restaurants, delivery, and personal care, while fewer feel obligated to tip than before. Data also shows a decline in the share of people leaving 20% tips. Inflation and tighter budgets are key factors behind this shift. Meanwhile, policy changes like a limited tax break on tips may offer modest benefits, but experts warn most workers won’t see significant gains, leaving service employees caught in the middle.
Money
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