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I'll give you my thoughts. My qualifications are having screwed up in business and at work a lot, though, so your mileage may vary.
If the director has authority to make these decisions, she has the right to make bad decisions. I would talk to her politely recognizing her full authority to allow/disallow tips. You could say tips were one reason you wanted to work here. You might ask what you could do to make her more money, so she can pay you an amount equal to or greater than the tips.
In the back of your mind, you are thinking of other places to work or how you can start your own business if this one does not pay enough. If you have to threaten explicitly to leave, it may not be the best place to work. People who say they're trying to think of new ways to make the boss more money and who really follow through on that with action are rare, so she should immediately be trying to get you back the value of lost tips. Otherwise you can find someone else who can afford to pay more and is looking for someone with that attitude + follow-through.
In this case, try not to have hard feelings. Maybe the boss is afraid sales are falling because customers are feeling nickled-and-dimed, and she can't find a way to create an experience customers are willing to pay more for such that she can afford to pay you more. You don't need to rub her failing in. Maybe you go work someone else, and in a few years she figures out a winning formula and remembers your value and good attitude that she could not afford in the past, but now she can offer you more to get you back.
This scenario is not interfering with liberty and capitalism. It's liberty and capitalism in action. If your boss senses you think it's somehow immoral they don't want to do tips anymore, it works against you. Maybe it's just a bad business decision, and soon you'll be a director at a similar hospitality business and really doing well because you don't make such mistakes. Or maybe you find it's harder than you thought. There's no way to know. This is the nature of business.
Sometimes you have to "fire" a client. You're getting too bogged down in their internal dirty laundry and not focused on your own deal. I think you should tell them this is not working and you'll work on training another vendor to ensure a smooth transition. Tell them you're raising prices Jan 1, if they can't transition or still want to use you on a limited basis. Don't worry about all this political crap about President Trump's rhetoric and mediocrity being bad for America. Your focus is on helping the client by providing your service. You have some issues with how they're doing things, and you have to warn them you're raising prices starting Jan 1, but you will be 100% enthusiastic about meeting their needs as long as they're a client.
There is a decent chance they'll accept the price increase. If not, they're too much hassle, even if they pay a reasonably high rate and always pay on time. They're a hassle and annoying to you, so they need to pay more.
The date-specified director of activities must not have been at a place.
See? Makes perfect sense.
Excuse me while I go chase a pterodactyl.
https://www.youtube.com/watch?v=3R5gH...