Tip Tax

Trump's 'no tax on tips' deduction won't benefit some tipped workers. Here's why

Donald Trump's proposal to eliminate federal income tax on tips, a key incentive to attract voters, may not universally benefit all tipped workers. Employees whose wages are primarily derived from tips below the federal minimum wage, and who rely on their employers to make up the difference, might see no net increase in their take-home pay as their employers' tax obligations might remain unchanged.