I dont think individual tips will inflate but the number of cases where folks ask for tips will increase. Do we even know who we are tipping most of the time. Went to restaurant Sat night options on the machine on top the $150 bill for 2 were 20%, 25% or 30%. But who am I actually tipping? Its not just the server. I like the French system.
My barber has a one chair shop, owns it herself, charges $25 per cut. Why would I tip since she's the owner, she can charge $35 if she wants. She takes no cc everything cash. With the no tax policy don't we think she'll count the full $25 as tip?