The financial strain caused by federal taxes on tips and overtime pay is significant for hardworking Americans. Recognizing the need for change, bipartisan support has emerged to eliminate these taxes, with backing from Donald Trump, Kamala Harris, and President Joe Biden. This article explores what the “No Tax on Tips and Overtime” policy could mean for employees and employers in the hospitality industry, and how you can join Zaller Law and TipHaus in advocating for federal legislation to be enacted early in Trump’s administration.
1. Bipartisan Support for No Tax on Tips
The “No Tax on Tips” policy has garnered bipartisan support, with both Donald Trump and Kamala Harris advocating for it during their presidential campaigns. Trump emphasized the need to reduce tax burdens on tipped workers, aligning with his broader platform of tax reduction. Similarly, Harris, while running for president, expressed her support for eliminating taxes on tips, aiming to win over service workers, a significant and influential constituency. Additionally, President Joe Biden has also shown support for this idea. White House spokesperson Karine Jean-Pierre confirmed in August 2024 that Biden would sign legislation eliminating taxes on tips for service and hospitality workers if passed by Congress. This bipartisan backing underscores the widespread recognition of the financial challenges faced by tipped workers and the need for this legislation to support them.
2. “No Tax On Tips Act of 2025”...
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