Tipping Point - How much is enough?

Having grown up in Australia and now living in America, it is always interesting to note the subtle difference in cultures between the two countries. One clear example is when it comes to "tipping". This is how a tip is defined : "A small monetary amount left to show appreciation for a service rendered  above the norm".  In America the standard tip is 15-20% of the bill, In Australia it is normally 1-!0%. The reason for the difference in tipping standards between America and most countries is due to the fact that American workers in the services sector are paid close to minimum wage (around $A7 per hour), whereas in other countries the minimum wage is much higher (In Australia it is about $A14). So the low minimum wage in America is justification for the large tipping component. In the restaurant and many other service based business, workers make more than half their wages from tips.

I am not against tipping, in fact after being here for one year the service you receive at American establishments is generally much better than you would receive in Australia, Europe or anywhere else in the world. I also think that given the minimum wage is so low compared to the cost of living (especially in bigger cities), that tipping has its place. What get's me annoyed is 2 things, One - everywhere you are provided a service (not just dining) a tip is expected and secondly, what's worse is when the service provider (in certain cases) automatically adds the tip onto your bill taking away your right to decide how much to reward the service.

I get a haircut and I have to leave a tip, I get a card in the mail from my newspaper delivery guy for a tip (what has he done that is so exceptional?), Tip the taxi driver when going to the airport - he didn't even bother to take the  bags out, and the list goes on. You go to a restaurant with more than 6 people, a 15+% tip is automatically added to the bill and you are encouraged to contribute more! So where do you draw the line?

Should I stop tipping in protest? That would be "un-American" as I have been told. Seriously though, I have seen how hard some people work for what they are paid and I do believe tipping deserves its place in American society. I have just adopted a simple "Aussie based" philosophy when it comes to tipping which can be summarized in 3 points

1. Where a service is provided that meets expectations I will tip between 10-12% based on the bill.

2. If the service is excellent and above the norm, I will tip between 15-20%.

3. If the service is really bad, yet they still expect a tip, my tip will be $0. That's right - I will not tip for bad service. If this is automatically added to the bill I will ask them to remove it because of the poor service.


What are your thoughts when it comes to tipping?