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Omaha Steve

(109,226 posts)
Thu Nov 20, 2025, 06:07 PM Nov 2025

Trump's "no tax on tips" broken promise and slashed benefits


From email: They say what happens in Vegas stays in Vegas, but the fallout from Donald Trump’s “no tax on tips” law is affecting workers far beyond the Strip.

Promised as a boon for hospitality workers, the law allows a deduction of up to $25,000 on tips, not tax-free tips, and excludes certain forms of gratuity. Social Security and Medicare taxes still apply.

Only about 60 percent of tipped worker households will see any benefit, and lower-income households making less than $33,000 annually may save as little as $10 per year. Nearly half of restaurant workers earn below the federal income tax threshold and will see no benefit at all.

Meanwhile, cuts to Medicaid, SNAP, and CHIP could deliver a blow 28 times greater than the tax deduction, leaving millions of low-income workers and their families struggling to afford food and healthcare. One single mother, earning $10,000 in tips, might save $1,007 in taxes but lose $1,620 in SNAP benefits, leaving her worse off than before the law passed.

Local hospitality workers describe it as a “bait and switch.” Culinary Workers Union members called it “a slap in the face,” and University of Nevada law professors warn that the law’s technicalities make it misleading at best.

At Native Voters Alliance Nevada, we’re fighting to build Native power and hold this rogue administration accountable. We support leaders who defend workers, protect communities, and ensure government serves the people — not special interests.

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Trump's "no tax on tips" broken promise and slashed benefits (Original Post) Omaha Steve Nov 2025 OP
Lying liars lie ... promises made, none honored. NotHardly Nov 2025 #1
Kick Omaha Steve Nov 2025 #2
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