Running a single player flat world, I noticed a constant high CPU load (around 140% of core cycles) from minecraft and, indeed, it couldn't keep up 20 TPS. Using the speed of items through a hopper, I measured it to be running at about 7 TPS. Upon pausing the game, the CPU load drops substantially. I used all minimal video settings including 2-chunk render distance. If I bring up the debug profiler pie chart, it changes very little when pausing the game which leads me to believe it's a server-side issue. FPS remains as good as it has always been.
If it helps, I tested the snapshots dichotomically and found that the issue appears in 14w25b.
Also tried with Java 7 and 8 for same results.
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I noticed this is only an issue on superflat worlds of the Classic Flat and Bottomless Pit presets. I guess it has something to do with having a lot of open area near the bottom of the world.
Improved performance in 14w32a, but still an issue. It runs at 13-16 ticks per second now on certain superflats.
Related to - if not duplicate - of MC-58120
Most probably caused by MC-58120
Somehow returned to me and this time keeps causing lagspikes. http://i.imgur.com/6qM8Nuo.png
Please include a crash report from 14w30c or most recent snapshot.