In Canada and the USA all tips are considered income by Revenue Canada and the IRS and "must" be reported!

That being said a $2.00 per hour pay increase is recorded and taxed whilst $2.00 an hour in cash tips not reported before the increase are not taxed...perhaps there was more to the Maine restaurant workers outrage than meets the eye?

Americans still use more cash in their transactions than Canadians...maybe it's a collective way around not paying Uncle Sam?  Tips paid in either country on a credit card are not only recorded, the credit card company gets their percentage off the top too, further reducing the flexibility of service staff in reporting their income earned although their customers are paying with after tax dollars!

Will there be a real net increase in disposable income for anyone other than the Government...I didn't see that raised or answered in the article!