Many on HN think everyone in the United States makes a 6-figure salary because they do. It's a common theme, I pointed out another potential instance.

40k of 200k doesn't make a big difference, 3016 of 15,080 (federal minimum wage @ 40 hours a week for a year) makes a HUGE difference as does 12,635.90 of 63,179.

Why do you think waitstaff and the like prefer cash tips? because they feel that no one will know if they don't report some or all of that income. Go ask any waiter, waitress, bartender, etc if they want you to give them that tip on credit card where they get taxed or cash where they don't. The same goes for electricians, plumbers, handymen, etc as they'll happily take cash first because they can fudge their numbers some.