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Now suppose that, as an alternative to leaving normal couple of bucks, I select to hand the waitress a $100 bill. Maybe I just scored a sizable business success and desire to share the problem. Maybe I know from conversation that they is just one particular mother, and so i figure the bucks means plenty more to her of computer does for me. Maybe I merely want to impress her with the a big shot I am. Should my motivation, noble or otherwise, turned into a factor on the inside waitress’ obligations to the U.S. Treasury? Clearly, begin to I am paying bears no rational relationship into the service she rendered. In fairness, many would contend that sum of some CEOs are paid bears no rational relationship to the importance of their services, or simply hire. CEO compensation is always taxable (Section 102 again), regardless of that merits.
