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No Tax on Tips: $1,300 Tax Cut for Waitresses, Not Billionaires

August 11, 2025

WASHINGTON, D.C. – The One, Big, Beautiful Bill offers new hope and relief for tipped workers through no tax on tips. Created by President Trump, this tax relief helps workers who were particularly harmed by the Biden Administration’s cost of living crisis. 

“No tax on tips helps fulfill President Trump’s vision of tax cuts for the working men and women who were left behind by Joe Biden and Washington Democrats. It’s truly sad and unfortunate that House Democrats voted against a $1,300 tax cut for waitresses, delivery drivers, barbers, and bartenders,” said Ways and Means Committee Chairman Jason Smith (MO-08). “This tax cut makes it that much easier for working Americans to make ends meet and have a little left over at the end of month.”

Democrats falsely charge that The One, Big, Beautiful Bill – with its no tax on tips and other working-class tax cuts like no tax on overtime, no tax on Social Security, a larger Child Tax Credit –  is somehow a handout to billionaires. On the contrary, these targeted tax cuts are a boon to the nation’s millions of tipped workers and other hardworking Americans, some of whom are forced to work multiple jobs to pay bills and support their families. 

At a Ways and Means field hearing in Las Vegas, the birthplace of President Trump’s no tax on tips, tipped workers laid out how the new tax relief will make a real difference in their lives.

Delivery Driver: No Tax on Tips Will Allow Me to See My Grandchildren

A DoorDash delivery driver shared how the $1,300 tax cut will allow her to more easily cover her husband’s medical expenses and travel to Missouri more often to spend time with her children and grandchildren. 

Sharon Simmons, Nevada DoorDash driver: “That’s why I’m very excited that Congress took action to include Dashers and other independent contractors in the no tax on tips. For someone like me, that means hundreds or potentially thousands of dollars that stay in my pocket every year. I plan to use these tax savings to cover follow-up medical visits for my husband and to travel to Missouri to see my mom, my kids and my grandchildren. No tax on tips will literally allow me to see my family more often.”

Waiter: No Tax on Tips Helps Working Class People

A server at one of Las Vegas’ many restaurants shared how no tax on tips will help him and his wife, also a server, along with other tipped workers pay for mortgages and save for their children’s college educations – all while helping support the broader community in which they live and work. 

Patrick Wrona, Nevada waiter: “My wife Felicia also works as a food service server in a restaurant at the Wynn and also knows how hard service workers hustle to make a living. I am very thankful for the new $25,000 above-the-line tax deduction for tips, better known as no tax on tips. It’s a game changer for us. This policy will let hard-working service professionals in Nevada like me keep more of what we earn. We are working-class people. We have mortgages and families. There are everyday bills and college educations to save for…When service professionals have more take home pay based on tips from their customers, we all spend it locally, often at the very restaurants and venues we help bring to life. That tip money isn’t trivial. It’s a lifeline to our families and our community as a whole.

FACT SHEET: The One, Big, Beautiful Bill Puts American Workers First