So, this is something I've had to deal with in the past.
If you work in the restaurant industry, you know that margins are often incredibly low. The whole point of the tip credit is relate to minimum wage laws, in that in certain professions that are considered non-exempt (subject to overtime and hourly minimum wage) and are normally tipped, the employer can assume that the employee is making a certain amount per hour in tips and not have to pay the employee; if the employee does not make at least that amount, the employer must make up the difference.
For many employees at many places, this is actually a decent deal; for middle and high-end restaurants, the amount of tips you can make greatly exceeds what many other professions can make. In addition, this also helps the employer because it keeps their costs lower for front-of-the-house, and enables them to better pay back-of-the-house (untipped) employees, like cooks/chefs.
All that said, I would much prefer going to a different model entirely where servers were the same as all other individuals and were just paid a good living wage, and that tipping was much less common. Traveling overseas, while I cannot comment for every place, it has been my experience that our model of tipping is very much an American thing (and by American, I include America's hat ....
).
When I was traveling in another country last year, I was told by several individuals that they were incredibly happy to see Americans again because we were known for our generosity when it came to tips.