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Some US Restaurants and Servers Oppose Republicans’ ‘No Tax on Tips’ Budget Proposal

  • The Senate Finance Committee approved a revised bill that would exempt tips from federal income taxation for workers earning under $160,000, as part of a larger spending package.
  • Nevada Democrat Steven Horsford has proposed legislation that would require restaurants to compensate employees with a minimum of $7.25 per hour, aiming to address issues related to insufficient base wages.
  • Some restaurant industry groups and workers oppose the proposal, arguing it excludes many kitchen workers who rarely receive tips and that it may discourage companies from raising wages.
  • Bartender Elyanna Calle pointed out a major flaw in the "no tax on tips" idea, noting that many restaurant employees, particularly those in kitchen roles, often do not receive any tips at all. Meanwhile, restaurant owner George Skandalos emphasized his attempt to create a fairer wage system through a gratuity-free model that distributes income more evenly among staff.
  • The National Restaurant Association backs the elimination of taxes on tips, estimating that over two million servers and bartenders would gain from the measure, while organizations like the Independent Restaurant Coalition have called on Congress to reevaluate the proposal to better address the needs of all restaurant employees.
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The Sun (Lowell)The Sun (Lowell)
+36 Reposted by 36 other sources
Center

Some US restaurants and servers oppose Republicans’ ‘no tax on tips’ budget proposal

By DEE-ANN DURBIN, Associated Press Some segments of the U.S. restaurant industry don’t support President Donald Trump’s proposal to eliminate federal taxes on tips, saying it would help too few people and obscure bigger issues in the way tipped workers are paid. The Independent Restaurant Coalition, which represents nearly 100,000 restaurant and bars, has appealed to Congress to reconsider the proposal, which is part of the president’s spending…

·Lowell, United States
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Associated Press NewsAssociated Press News
+29 Reposted by 29 other sources
Lean Left

Some US restaurants and servers oppose Republicans' 'no tax on tips' budget proposal

Some segments of the U.S. restaurant industry don’t support President Donald Trump’s proposal to eliminate federal taxes on tips.

·United States
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68% Center
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abc News broke the news in United States on Thursday, June 19, 2025.
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