You know what to do
It would require changing stuff in the tax code, because tips still = income. Plus I am sure the IRS will see it how ever it written in the code.
Tax code is pretty well documented and well defined, they do not fuck around when it is time to take your money. Also at this point your recursively tagging yourself which is not a good sign so I am done talking to (you)
It is a higher cost then most realize, it not like going buying a cheap web services on godaddy.
I was going to ignore you but I will respond this last time.
You clearly have never had to do payroll before. There is many other factors besides base pay, you only see the federal, state, and fica tax. On the other side there is a bunch of stuff the employer has to pay into as well.
So in your fantasy scenario you want to convince your boss to just pay you in cash and we will just call it tips. IRS bois will just say "you dumb that is still income" and then will proceed to take even more money from you. They will then most likely will then go after the employer for their cut from that as well. That is a good way to game over.
There is also all the various state labor laws that have to followed by the employer. They very from state to state but usually concerns it self with hours, rate, sick days, ect all which must be documented. Then some states fund themselves via income taxes other don't.
I personally think there should be no income tax at the federal level and the states can make their own choices.Although I can see people moving to where they not taxed at all or even less. Would still have to figure out where fica stuff fits in probably at state. There also should also be no inheritance tax.
I think there should still be a property tax but no more then 0.5% Federal and 0.5% to state+local. That can pay for infrastructure. and makes it in the governments best interest to make it better. There should also be capital gains taxes but at low 20s at peak rate. Corporate tax should be about the same maybe a little lower. It would also create a feedback loop where government encourage business via policy and in turn have a higher budget to work within.