The new no tax on tips provision within the One Big Beautiful Bill allows tipped employees to deduct up to $25,000 from their federal taxes. Lawmakers pushed for the provision to increase take home pay for the nation’s tipped employees. Data suggests it’ll boost average take home pay by $1,300 annually. However, some industry experts and tipped employees feel this provision has the potential to do more harm than good. They also suggest wage reform is the better way to go about helping low income tipped employees.
Chapters:
0:00 Introduction
1:52 Campaign promise
3:39 The stakes
6:39 Wage reform
Credits:
Produced and Edited by: Christian Nunley
Camera by: Mike Fowler, Paul Lester
Managing Producer: Anuz Thapa
Senior Director of Video: Lindsey Jacobson
Animation: Jason Reginato, Emily Park
Additional Footage: Getty Images
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Why No Tax On Tips May Be Making America’s Tipping Problem Worse
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