TAXES: The Real Rich

Tipping is a formidable institution, and nowhere is it more slavishly and generously served than in Manhattan, where it costs 25¢ minimum to redeem a hat from a hat-chick, vastly more to ensure a second well-served meal from a Cadillac-owning waiter. Last spring the worst suspicions of tipping's intimidated victims—the customers—were confirmed when Hans Paul, headwaiter at Manhattan's Waldorf-Astoria, was sent to prison; over four years, the Government charged, Headwaiter Paul had evaded payment of $67,070 in taxes—all due on tips. Last week another headwaiter—Hans Paul's successor—was in similar trouble. The Internal Revenue Service charged in an indictment that the...

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