
Congress Is Poised to Pass ‘No Taxes on Tips’ Legislation. But What Does That Actually Mean?
Amy McCarthy
created: May 21, 2025, 2:47 p.m. | updated: May 21, 2025, 6:21 p.m.
And it’s not bad, necessarily, but it likely won’t have much of an impact on the majority of tipped workers.
According to Vox.com, only about a third of tipped workers earn enough money to pay federal income taxes at all.
Seven U.S. states — California, Washington, and Alaska among them — have banned the tipped minimum wage.
States that have eliminated the tipped minimum wage have seen economic growth beyond the restaurant industry and declines in poverty rates.
Harris had expressed vague support for an increase in the minimum wage, but had not formally committed to eliminating the tipped minimum wage.
1 month, 3 weeks ago: Eater