The news as it trends.
The Republican-backed “No Tax on Tips” proposal is drawing intense criticism from servers and bartenders, who have taken to social media to call it a scam.
While the bill claims to support tipped workers, opponents argue it forces servers to declare every dollar, eliminating unreported cash tips and making IRS audits more likely.
With cash tips disappearing, the IRS can now track all tips received through credit cards, debit cards, and checks, leaving many workers worried about higher tax burdens.
Some argue that this proposal hits low-income earners the hardest, while the wealthy continue to benefit from tax loopholes.
Critics highlight that wealthy individuals minimize their tax obligations through complex financial structures, while servers and bartenders have little flexibility when reporting their earnings.
Some workers fear that reporting more tips suddenly could trigger IRS audits, making tax filings even more stressful.
Supporters of the bill insist that making all tips traceable is simply ensuring fair taxation, preventing tax evasion, and guaranteeing workers receive benefits tied to their earnings.
Still, the debate remains fierce, with tipped workers arguing that this law does more harm than good.
Another critic adds, “This is yet another decoy so people won’t notice the cuts to Medicare, veterans’ benefits, and the massive tax break he gave to the wealthy.”
Both in a live video and comments, see some of the reactions below.
@justjessbea #fyp #millennial #boomer #genz #genx #wtf #nomad #bartender #server #tips #taxes #help ♬ If I Only Had A Brain (Wizard of Oz) – Knightsbridge
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