A recent conference attendee in Las Vegas reported paying $7 for a cup of coffee, followed by a suggested $1 tip for the server. The individual expressed frustration about the tipping culture in the U.S., raising concerns about its potential escalation and linking it to recent policy changes under former President Trump, specifically the law allowing for a “no tax on tips” approach.
This legislative change aims to benefit tipped workers and small business owners, reducing the pressure to raise wages in an environment where gratuities are increasingly seen as part of compensation. However, the attendee criticized the perceived burden on consumers to tip more frequently while highlighting the temporary nature of tax benefits for tipped workers. Eligible workers can deduct up to $25,000 of tip income, but eligibility restrictions apply, and many who qualify may not benefit due to low income levels. This deduction is also set to expire in 2028.
The attendee questioned the inclusion of certain job categories in this policy, such as digital content creators and various licensed professionals like electricians and plumbers, suggesting that these workers typically set their fees independently. The reasoning behind smattering the list with roles like “self-enrichment teachers” and event planners also sparked skepticism about the need for tip incentives for such professionals.
Conversely, they noted the omission of other workers who could also be considered for tips, including postal workers, flight attendants, school teachers, school bus drivers, and grocery store cashiers, all of whom provide essential services.
The attendee suggested that a reevaluation of who qualifies for the no-tax benefit is necessary and indicated a preference for a system that incentivizes fair wages rather than relying heavily on tips.
Source: https://www.theguardian.com/business/2025/sep/14/us-tips-tax-trump