Why ‘no tax on tips’ isn’t as helpful as you think
Trump just eliminated taxes on tips, making good on one of his promises during the 2024 campaign.
The law aims to provide relief for millions of service workers. But experts say that its effect will be limited — more than a third of service workers in the U.S. earned too little to pay taxes on their tips anyway, according to the Budget Lab at Yale University.
Instead, some are calling for a longer-term solution to help service workers. Europe offers a model for a different approach to tipping — and service work.
Subscribe to our YouTube channel | Watch more videos like this
