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Emmer misrepresents the media -- did the media misrepresent Emmer?

Tom Emmer looked into the camera and told an untruth.

“There are a lot of people out there who've been misled by what I would say is the less-than-forthright mainstream media here in the Twin Cities,” Emmer said in a video released by his campaign Monday, as controversy over his “tip credit” stand lingered. He continued:

[T]he other day I talked with a couple of restaurant owners in downtown St. Paul and they told me that they need some help, that government's not helping them out too much, and they talked about how much their servers get, and it's all on tape and all I did was respond to them.

And they said, you know, if it was offered, would you advocate for a tip credit and I said, 'Yes!'

But then the next question has not been publicized very well. The next question was, 'Tom, so you're saying you'd reduce the minimum wage' and my answer was, 'That would be foolish. Absolutely not. We're not talking about reducing anyone's wages.' We're talking about making sure everyone can be successful. We want servers to be successful, we want the wonderful owners of our restaurants her in Minnesota — I don't know if people know we lost 300 of them last year — we want them to be successful ...

The “tape” — a version posted on Emmer’s own EmmerTruth.com, cross-checked against a DFL tracker’s unedited version, and a transcript —shows Emmer never got a “reduce the minimum wage” question at a July 5 Eagle Street Grille appearance. He never ruled out a wage cut, much less called it foolish.

The closest actual question, from Pioneer Press reporter Bill Salisbury, was, “Are you suggesting you’d repeal the minimum wage law, or just amend it?”

Emmer’s answer: “Well I don't know you could do that. We’ve talked about that before — not with you — but I think you gotta look at what we're doing. We got to talk with these (gestures to cafe owners off camera) — that's why it's probably more in line with a tip credit that you've gotta be talking about. Plus, you know, Bill, you’ve got federal law.”

In other words, Emmer rejects a wholesale repeal of minimum wages, but never says he won’t reduce them.

At this point in the campaign, the candidate has proclaimed his aversion to detail — for example, he won’t flesh out his pledge to cut government 20 percent for another couple of months — and in this case, used his own vagueness as a counterattack.

Within a day of his Eagle Street utterance, with criticism mounting over cutting generally low-paid workers’ wages, Emmer’s campaign issued a statement saying he’d only wanted to freeze tipped employees’ wages at the current state minimum, not cut them.

Then, on EmmerTruth.com, the campaign asserted that the media had misrepresented the candidate. They didn’t call out media organizations who were at Eagle Street — including the Associated Press and Minnesota Public Radio — but some, like the Star Tribune, who weren’t.

The Strib’s July 5 story, headlined, “Emmer: Lower wages for tipped workers,” included this opening sentence: “Republican gubernatorial candidate Tom Emmer rekindled a smoldering debate Monday when he said minimum-wage workers who earn tips should have their wages reduced.”

Reporter Jackie Crosby interviewed Emmer separately; her evaluation was later echoed by the Strib editorial page and picked up a Mankato Free Press business columnist. A couple of days after Eagle Street, MinnPost writer Doug Grow also wrote that Emmer “believes that minimum wage workers who receive tips should have their minimum hourly wages reduced.”

Says Emmer communications director Bill Walsh, “The guys who were at the event got it right. The issue is there was no proposal, and the media filled in specifics.”

Crosby says she never asked specifically about reducing wages, and Emmer “never talked about lowering the minimum wage. We talked about the tip credit. He made many points in our conversation — about this hospitality survey saying servers earn $15.43 an hour, about high menu prices, that he wanted a ‘win for everyone’ — and that [Eagle Street owner] Kasel supported his workers but wanted to stay in business.”

While Emmer passed on two chances to say he was talking freeze, not cut — at Eagle Street, and in his conversation with Crosby — Walsh argues that Emmer never said he’d reduce the minimum wage, as Crosby wrote.

But that’s a clearly common-sense interpretation, Crosby asserts: “Every reason Rep. Emmer gave for supporting the tip credit was rooted in his expressed belief that businesses were being burdened by having to pay their servers the full minimum wage. And every one of those reasons was spelled out in the story.”

As Walsh noted, no story featured a quote from Emmer literally saying he’d cut worker pay — even though the candidate said at Eagle Street that “something has to be done” about “the very people that are providing the jobs and investing not only their life savings but their family's future” making less than tipped employees “earning over $100,000 a year.”

If you wonder why the media badgers candidates at times, this is it: Leave them an inch of wiggle room and they’ll take a mile of what-I-really-meant.

As KTCA’s Mary Lahammer reported, Emmer had proposed abolishing the minimum wage in 2005, so he has a track record on the wage-cut issue. Lahammer also noted GOP House Minority Leader Kurt Zellers’ claim that the Minnesota Restaurant Association has a freeze proposal on the table. (The industry proposed something similar in 2007, according to Business Journal; a 2009 "Super Wage/Tip Credit" plan would freeze those at federal minimums if they earned over $12 an hour between wages and tips.)

Meanwhile, the Star Tribune’s Rachel Stassen-Berger pithily observed that if Emmer's now proposing a freeze, it would provide little or no relief to his job-providers. A freeze means a tip credit wouldn’t be created until the next time the state raised the minimum wage — yet Emmer opposes raising the minimum wage. That, Stassen-Berger wrote “makes the tip credit idea moot.”

As I’ve noted, the tip credit issue isn’t the most important one facing the state. I find the issue fascinating because it’s a real-world test of the economic populism sweeping the country, and, for Emmer at least, it’s a test of character under pressure. Telling a falsehood about what you were asked, and how you answered, isn’t a great way to pass.

At the same time, the media needs to be careful about filling in blanks left by the intentionally vague, while probing for details to remove all doubt. I include myself in this prescription, by the way.

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Comments (29)

"If you wonder why the media badgers candidates at times, this is it: Leave them an inch of wiggle room and they’ll take a mile of what-I-really-meant."

Actually, this is why people don't believe the media. Emmer did not say what the lead claims he said. And it does not logically follow from what he did say, as is evident from his current position that he wouldn't reduce their current wages.

Should anyone believe Emmer? No. The guy is obviously plays fast and loose with the truth. But they shouldn't believe the media either, because a clear, simple conclusion always makes a better story than an ambiguous or nuanced one.

That Emmer wants to cut servers wages is certainly a better story than a discussion of the nuances of the tip credit.

Of course, now Emmer is trying to figure out how to get money for his cronies in the restaurant business without taking it from servers. His solution? Let those $100,000 per year servers pay the same taxes as someone earning minimum wage. Now there is a win-win except for the rest of us who have to make up the revenue with higher taxes, or the kids whose education gets cut to make up the difference.

We have come to expect politicians to occasionally be dishonest. But Emmer is not only dishonest, but apparently not very bright.

“I never give them hell. I just tell the truth and they think it's hell.” Harry S Truman

Seems to be Emmer's problem.

Interesting post.

Aside from the minimum wage issue, and just to revisit the initial guts of the Emmers flap: it struck me at the time that his passing on the anecdote (which process got left out of much of the later coverage) of "three waiters who make $100,000 a year in tips," that such stuff actually was plausible, as eyebrow-raising as they numbers are.
So I finally did some math.
If a waiter at one of the nicer St. Paul establishments had, say, 35 customers each eight-hour shift, each spending $60, tipping 20 percent, or $12, that adds up to $420 per day in tips, times 250 days equals $105,000;
or , say, 35 customers per shift, each spending $50, tipping 25 percent, adds up to $437.50 in tips per shift; or $2,187.50 in tips per five-day week; or $109,375 per year (50 weeks of such five-day shifts and tip averages.).
That would be 4.35 customers per hour, each shift.
Or 24 customers per shift, each spending $75, tipping 25 percent, adds up to $450 in tips per shift; and $112,500 per year of 50 five-day weeks of such shifts.
I'm not expert in the field; are these figures far off the reality of such restaurants?
On top of this, the 40 hours per week at $5.25 an hour would gross $210 per week, or just over $10,000 a year.

These numbers make it seem plausible to me that a waiter at a top end establishment in St. Paul could do this.
I'm guessing that many who make that much per shift probably work three or four nights a week, rather than five, just because it's hard work and they can make a good living on three or four nights a week.
I've talked to bartenders who work in nicer establishments and they have told me they work three nights a week and make "a good living,";; I don't know what they mean exactly, but I'm thinking it's got to be north of $40,000 or they would work more.
It seems to me that much of the kerfuffle since the first Emmer/waiter story has been more spin than not....

I think one explanation for some of the reaction to Emmer's initial story was that no restaurant/bar owner wants to go public, telling how much his wait staff makes in tips, because I think it's a well-known secret that it's easy to shield much tip income from income taxes by under-reporting; unless income tax collectors have good reason to think that there is big underreporting going on in any certain establishment. Ergo, once Emmer went public with the anecdote (he named the restaurant, right?) the restaurant owner backed off, not wanting to make trouble for himself or his staff, over the $100,000 stuff.
And waiters themselves probably don't want it bandied about that they are making that much in tips.
Let's remember Emmer said the owner said that those numbers only applied to three of his employees; I'm sure in any such place there are primo employees who get primo shifts.
And of course, one possible fault in Emmer's initial point was applying the numbers of the few and elite waiters making the most, to any policy covering all waiters.
But, aside from all the confusing and weasely stuff Emmer may have done since, it seems to me the initial story was plausible.

Or is my math and/or figgerin' wrong?

I was pleasantly surprised to see the media draw a valid conclusion for change rather than parse words as stenographers. The fact is Emmer would try to cut or eliminate minimum wage if her could, and he clearly indicated that at the press conference even if he didn't say it at the time. After all, when he says he want's to do something to help business owners, beside lowering their wage obligations what else would he do?

It's also interesting that Mr. small government is suddenly looking for some kind of government solutions to small business problems while denouncing any government assistance for ordinary people as big government encroachments on our freedoms.

I have a much simpler rule of thumb:

If you're a small biz owner, you don't provide your employess with any benefits and you can't afford to pay them minimum wage? Then go out of business. You really don't contribute anything meaningful to the economy or the job market.

I'm sure there are others out there that run run a similar business that CAN pay minimum wage. They deserve to stay in business while you become roadkill. It's called survival of the fittest. Those who can't run a small biz get crushed in the "free market".

I find it incredible that an issue that was on nobody's table has become a major controversy.
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I was a union waiter back in the olden days and we were paid less than everybody else. But we made more in tips in a night than our wages. The good looking women waiters made much more. I wonder if I can file a lawsuit for unfair wage practices, now that I think about that.
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With a huge deficit staring us in the face, it is incredibly irresponsible to spend more than an article or three on this issue.

In response to Tim Johnson's analysis regarding the possibility of servers make 100K or more a year.

First - it is possible but not probable. State wage data shows that the 90th percentile of waiters and waitresses earn an average of $17.64/hour, or $37k/year for full time work. There are about 4500 servers in the 90th percentile.

Those three servers at the Eagle Street Grille must work their tails off - look up the menu, its not an expensive, fine dining resturant. Two people with steaks and drinks could hit the $75+ ticket, but I suspect their average ticket is not $75 (could be wrong though).

Michael Hunt: I have an even simpler solution.
If your employer does not provide any benefits and does not pay you minimum wage, . . . QUIT, and go to work for one that does.

Lying...denying...obfuscating...slippery positions...Emmer has just joined the Bachmann/Palin/Angle/Rand Paul/et al Club. When are we going to tire of this nonesense and baloney? And, why would we permit any of the above to be put in a position of power, responsibility, and the honor of holding office?

"The fact is Emmer would try to cut or eliminate minimum wage if her could, and he clearly indicated that at the press conference even if he didn't say it at the time."

On a policy level? Sure! Why not? It's economics 101 - if you make something worth other than what people are willing to pay for it, the market distorts. Minimum wage laws force businesses to pay more for unskilled/entry level labor than it's worth (or, with waitstaff, double-pay them), so the number of jobs decreases. The minimum wage hike is a major reason why nobody's hiring teenagers. Faced with minimum wage hikes and "living wage" laws, even fast food operations are phasing out "burger flipping" jobs for automation and process shortcuts.

Think we couldn't use a couple thousand of those jobs these days? Tough!

"If you're a small biz owner, you don't provide your employess with any benefits and you can't afford to pay them minimum wage? Then go out of business. You really don't contribute anything meaningful to the economy or the job market. "

Please please please tell me you're on Mark Dayton's PR staff? I hope Tony Sutton makes thousands of T-shirts with that quote on it.

What Mr. Edwards said.

"With a huge deficit staring us in the face, it is incredibly irresponsible to spend more than an article or three on this issue."

It was inevitable. The media are just helping the DFL run out the clock 'til August 10.

Mitch asked: "Think we couldn't use a couple thousand of those jobs these days?"

Before you answer, take a moment to enlighten yourselves. Here is a startling graphic of what "Hope&Change" looks like to someone out of work today:

http://tinyurl.com/yjvndyk

David, you said,"Telling a falsehood about what you were asked, and how you answered, isn’t a great way to pass."

I'm obviously missing something. You haven't shown any evidence that Emmer did this. A reporter's interpretation from an "unasked" question really shouldn't be fodder for a reporter's analysis in a supposedly straight news story. The reporter should also say in the article if he/she specifically asked the question from which she/he is drawing her/his conclusions.

I'm far from a fan of Emmer, but I'm not certain he is getting a fair shake on this one.

"Or is my math and/or figgerin' wrong?"

I think your figgerin' is basically wrong. First, most restaurants don't generate that many customers during their dinner hours 250 days per year. Second, at most upper end restaurants the server doesn't get to keep all their tips. They get shared with busboys, cooks etc.

"Minimum wage laws force businesses to pay more for unskilled/entry level labor than it's worth "

BS. The minimum wage rewards employers who make low skilled workers more productive. If you can't afford to pay minimum wage, then your business model is broken. Its not the workers who are unproductive, its you.

"I'm obviously missing something."

Yes, I think you are. Here is the operative part of the above:

"And they said, you know, if it was offered, would you advocate for a tip credit and I said, 'Yes!'

But then the next question has not been publicized very well. The next question was, 'Tom, so you're saying you'd reduce the minimum wage' and my answer was, 'That would be foolish. Absolutely not. We're not talking about reducing anyone's wages.' "

Apparently that question was never asked and, so, he never actually gave that answer. He just made this up.

Hal - I find it a tough call.

I think if you talk to most folks - including Republicans - they would say the plain meaning of "tip credit" is "wage cut." It's true the freeze is possible, but it's the opposite of Occam's Razor, and it's curious Emmer never specified the least-obvious alternative. Also, as noted in my post, if you're proposing a freeze but not a minimum wage hike, you don't really have a tip credit at all. Highly fishy.

As a journalist, you don't want to be a dupe. I know plenty of folks inside and outside the media think Emmer clearly meant "cut," only later discovering "freeze" was not foreclosed and his campaign latched onto that.

If it were me, I would not have worded the lede the way Jackie Crosby did - and if I was her editor, I would've insisted on a quote if I was going to write "said," even if I was using "said" to introduce a paraphrase.

But in the end, I don't think Emmer really got an unfair shake. His own policy advisor admits he didn't have a policy, so the freeze looks even more like butt-covering. The Strib should've been more careful, but it wasn't a falsehood on the order of Emmer telling us he asked and answered a question he neither got, nor answered.

By the way, I noticed (after I wrote today's piece) that the Strib still refers to Emmer's original plan as a cut, so they aren't backing up.

The recovery is not inevitable; to continue, it will require continued financial stimulation. Even small tax increases will cut growth; larger tax increases will cut growth seriously or eliminate it altogether. Increasing the minimum wage during a recovery, exacerbates unemployment. And contrary to popular wisdom, deficit spending has not been the cause of inflation (which for the past 50 years has been associated with oil prices, not money supply).

Tim Johnson: "because I think it's a well-known secret that it's easy to shield much tip income from income taxes by under-reporting; "

Actually, not true at all.

First, with the vast majority of customers paying by credit or debit card, the paper trail for the actual amount of tips received is right there to be audited.

Second, in a "tipped" job category, the IRS automatically assumes an 8% tip rate based on sales. The employer is required to report total sales, so if you significantly under report your tips, you're setting yourself up for an audit.

Thanks for your explanation. Rightly or wrongly I wasn't reading "tip credit" as synonymous with "wage cut." I continue to believe though that the reporters could have been more forthright in what was actually asked and answered.

John, I'd also make that argument if it was the EMPLOYEE crying about their wages. But you seem to ignore the fact that it was the EMPLOYER crying about having to pay a below-poverty-level wage. But thanks for the effort, albeit wasted.

Richard (#16): What you say about taxes sounds plausible from a supply-side perspective, but the economic history does not actually back your claims. Theory, particularly on the right, makes it seem as if all tax increases cut economic velocity, and all cuts expand it, but if that were true, how did the Bush I and Clinton tax increases work? You propose an opinion but it appears you think it is a fact. Thanks for listening.

"His own policy advisor admits he didn't have a policy, so the freeze looks even more like butt-covering. "

David -

But, in fact, the STRIB and others reported that he DID have a policy. Whether that was fair to Emmer's intent or not, it was unfair to their readers.

But the larger problem is simply failing to discuss the real issues around tips. I oppose a tip credit. But it is apparent that tips cost the restaurant money.

Most businesses pay VISA charges based on the amount charged, so when you put a tip on your credit card the server gets the full amount and the restaurant pays a percentage for the cost of collecting it.

The second issue is that restaurants have to pay the employer portion of payroll taxes on tips. So a $20 tip may cost them a couple bucks more than if no tip was left.

It appears the mainstream media is just one more participant in this meaningless scrum trying to spin things to make themselves look better.

Tim,
Some issues with your suppositions:
First, your numbers are pretty high for number of customers in a night, but some places are that busy, so okay. There's also a high variability in how much one makes per night. Some nights are slow, some nights are fast. However, on a fast night, you might serve more people but have a lower tip average, because you have less time to spend on each table.

Second, a tip average of 25% would be really high. Many people still think 15% is the standard. Some people don't tip well, or don't tip on wine, or for some other reason which may or may not be the server's fault, might end up tipping far lower than 25%.

Third, waiters have to declare a certain percentage of their sales as tip income (I see someone above says 8%) regardless of whether they actually received a tip. So if someone stiffs them, they lose money.

Somebody else already mentioned this, I think, but at many restaurants, it is standard practice to tip out the assistants, the bartender, etc. The server doesn't get the whole tip.

So my estimate: On an average, if a server had 20 customers per night, and got an average 20% tip on $60 for each, then paid out 20% of that to others, he'd get $192 for the night; if he worked 5 nights a week, he'd make $960. Multiply by 52 weeks and he's got $49,920 for the year. Not bad by any means (though we should consider this server may bot get any benefits), but not rolling in dough either.

Re: David Galitz: thanks for the response: aren't you, in effect, saying the IRS assumes a tip rate of less than half of what typical waiters receive? Ergo, it would be easy to under-report one's tips: turn in 8 percent instead of the 15 to 20 percent actually received, no?
Good point about the use of plastic to pay; but could anyone really track back sales/tips off receipts to individual waiters's actual vs. reported tip income ,and make a case of what was reported, what was not? Is that practically possible, even for the IRS?
I think this point should be established by someone, with real data. Are there some experienced servers out there who could tell us what the real deal is? Please weigh in.
And remember, I'm talking cases here; the high end; I have no trouble believing the $17.50/hour average or median for waiters. But I think it also could be true that some waiters are making $80,000 to $100,000 a year in tips, in the Twin Cities. Not many, no doubt. But if some are, it's pretty interesting, no? Because it would tend to include facts such as: few waiters get health benefits through their job, right? And, few pay income taxes on all their tips, right?
Maybe I'm off on this.
Depending on the area and the sort of restaurants - lots of old people still tend to tip a buck whatever the bill is - isn't 22 percent and more about the norm at high end restaurants?
I suppose if that were the case, the IRS sort of would know it and would tend to check out the high end restaurants more closely??

@ Ralf, Thank you for the heads up.

Economist Mark Zandi and Economist Joseph Stiglitz are with me on this in relation to an economy that is "extremely fragile" and needs all the help it can get.

Local economist Louis Johnston: Economics professor, St. John's University and College of St. Benedict has mentioned the same as well. I think these folks represent a diverse and wise group of economists.

Two things: It is hard to contract your way to growth and a tax cut/break is a tax increase for all the rest.

Tim, Elsa addressed most of your questions.

And if there ARE a handful of wait staffers making $100,000/yr, so what? While it might be an interesting factoid, they're such extreme outliers that it's certainly not anything on which to base a minimum wage policy.

Emmer, welcome to politics (sadly). I have my issues with "reporters" drawing conclusions, but Emmer could have handled this by being ready to address questions fully with defined policies. He is past the stump speech phase and needs more substance now.

Candidates are going to make mistakes and/or be caught off guard. Nothing new there. Emmer's best bet is to make this issue go away and move on. Lesson learned.

David G: So What?
So let's DANCE!.
I agree, it's nothing to base policy on; but simply dang interesting. And germane to whether the original anecdote to this whole shebang was accurate.
That's something.
You can make a good living waiting. As it should be.
Elsa: thanks for the info. I can't disagree at all, and I think your point doesn't disagree, necessarily, with mine.
I did check with some people with waiting experience and they said it's the common practice to not report half of tip income or so....; but that regular tip income of more than $150 a night would be highly unusual.
I got interested because reaction to the first story about Emmer's comments seemed to be cant aimed at portraying him as uncaring of waiters and such; which didn't seem evident to me or the point of his first comments.
He obviously has weirdly handled the whole issue since then.
Anyway, would someone hang at the St. Paul Hotel every night for a few weeks and get this nailed down, please.
It would be fun to know what the people tending bar and waiting on tables make there in tips, week in , week out.
I know I've tossed Georges around the bar there like they grew on chopped down cherry trees.

This ongoing episode strongly suggests to me that Emmer's campaign staff and handlers are struggling. I've seen enough of his house floor speeches and pressers to sense that he is definitely his own persona and does not seem to care what others think.

In some cases, that "wild hair" might be good, but it does have a potential downside when the candidate charts his or her own course. I certainly cannot say whether his campaign staff is complicit in this or if they have been overruled, but my impression is the candidate himself is handling them and not the other way around.

A gaffe here or there is simply part of today's political circus. However, when the gaffes begin to collect and they begin to overtake the larger issues that well-heeled contributors are more interested in, the risk is that some of those folks are not going contribute later in the campaign when the money is really needed.

Yes, history would suggest that the Republicans in Minnesota have an opportunity to make significant gains in the midterm elections. The degree of success, however, could be influenced by how the Emmer campaign fares the rest of the way.

Emmer is a crybaby. He got caught talking out of his hiney, and now it's someone else's fault. He clearly said that there were servers making more than 100 grand a year with tips, and that it was wrong for them to make more than the owners.

My question is, even if it were true that he was told that, (and no one has copped to saying it) why is that wrong?

The owner would have known the rules of the game before opening a restaurant. If an employee is so good at serving that they can make that kind of money, than tough bananas to the owner if they are not good enough at owning to do the same. Why should the government step in to make sure the owner wins? If the owner doesn't like it, fire the server or close the place.

Of course, if a server is that good, they may just go down the street and make some other owner that much more sucessful. And here is where we see that Emmer doesn't get how businesses work. A superstar server brings customers back. There's no way that kind of a server wouldn't be a godsend to the owner and everyone who splits their tips.

Of course, in the real world where actual governing has to take place, such a situation is so rare (if it even happens)as to have no real bearing on policy. The vast majority of servers are barely getting by. Emmer gave them a kick in the teeth just to serve up red meat to his selfish, small-souled fans.

And like I said, he screwed up, so it's someone else's fault and bad motives. He's not man enough to apologize.