Search
AI-powered search, human-powered content.
scroll to top arrow or icon

The Graphic Truth: How many Americans will benefit from a tax cut on tips?

The Graphic Truth: How many Americans will benefit from a tax cut on tips?
Paige Fusco
Senior Writer
https://x.com/zac_weisz
https://www.linkedin.com/in/zachary-weisz-2ab852119/

Just as President Donald Trump promised on the campaign trail, the House-passed tax-policy bill will end taxes on tips. However, only a small proportion of Americans will actually benefit from this policy, as this Graphic Truth shows. Even among Americans in the bottom quartile of household income, just 5% have a tipped occupation. The “no tax on tips” policy has faced criticism for an entirely separate reason: Hedge fund managers could exploit the bill to limit their own tax liability, the left-leaning Center for American Progress warned. The policy was a winner on the campaign trail, but that might change if it becomes law.