Restaurant workers say ‘no tax on tips’ undermined by benefits cuts
Summary
President Donald Trump's proposal to eliminate taxes on tips has bipartisan support. The House and Senate bills differ slightly, but both intend for workers to have reduced taxable income. Critics point out that cuts to benefits like Medicaid and SNAP included in the bill could negatively affect restaurant workers who rely on these services.Key Facts
- President Trump proposed eliminating taxes on tips, receiving support from both parties.
- The House bill allows workers to deduct all tips from their taxes, while the Senate sets specific limits.
- The tax break would start in 2026 and expire in 2028.
- Economists predict ending the tax on tips could increase the federal deficit by $100 billion over 10 years.
- Many restaurant workers earn a federal tipped minimum wage of $2.13 per hour.
- Approximately 66% of tipped workers don't earn enough to pay federal income taxes.
- The bill includes Medicaid work requirements, needing 80 work hours per month for continued eligibility.
- Critics note these requirements could be hard for restaurant workers due to irregular hours.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
