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...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!