Well, the "Someone" who is pocketing your 35 cents is the waitstaff. My mother and my DH were waiters. It's a difficult, tiring, and HONEST job. You'd be surprised how many 'nice' people stiff or deliberately short the waitstaff.

Me - I overtip by your standards. When I get good service - and we go out a great deal, living in a restaurant town like San Francisco - we tip around 25%. My DH used to cringe, until he actually worked as a waiter for two years while going through hotel and restaurant management school. Once he experienced what it was like, he wholeheartedly supports rewarding good service. It's expensive to live where we do, and only those rare times when we receive bad service, do we tip lightly.