The hidden agenda behind “no tax on tips”
Apple News In Conversation
Apple News
4.2 • 1.8K Ratings
🗓️ 14 August 2025
⏱️ 27 minutes
🧾️ Download transcript
Summary
“No tax on tips” is a provision in President Trump’s new tax-and-spending bill that promises a tax break for tipped workers. But nearly 40% of these workers don’t earn enough to pay federal income tax and won’t directly benefit from the policy. In his latest piece for the New Yorker, contributing writer Eyal Press explains how the “no tax on tips” proposal originally came from the National Restaurant Association — known to some labor advocates as “the other NRA” — a powerful industry lobby that has long fought against raising wages. Press spoke with Apple News In Conversation host Shumita Basu about how the association has shaped labor laws behind the scenes, and why a policy that looks like a win for workers might actually serve their bosses instead.
Transcript
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| 0:00.0 | This is In Conversation from Apple News. I'm Shemitabasu. Today, the big industry firm behind no taxes on tips. |
| 0:20.7 | Last summer at a campaign rally in Las Vegas, Donald Trump made a promise. |
| 0:25.8 | For those hotel workers and people that get tips, you're going to be very happy. |
| 0:30.0 | Because when I get to office, we are going to not charge taxes on tips, people making tips. |
| 0:37.8 | And he stuck to that promise. |
| 0:40.0 | No tax on tips made it into the tax and spending bill he signed into law earlier this summer. |
| 0:45.3 | It was one of the few provisions in the package that drew some bipartisan support. |
| 0:50.1 | The policy exempts up to $25,000 in tip income from federal income tax. |
| 0:56.0 | Supporters say it's a big win for service workers. |
| 0:58.8 | But if you look at the fine print, it appears that's not who stands to benefit the most. |
| 1:03.7 | Almost 40% of tipped workers don't actually make enough money to pay federal taxes. |
| 1:10.6 | That's Ayal Press. He's a contributing writer at The New Yorker and a fellow at... actually make enough money to pay federal taxes. |
| 1:12.1 | That's Ayal Press. |
| 1:16.0 | He's a contributing writer at the New Yorker and a fellow at Type Media Center. |
| 1:20.0 | A casino dealer or maybe someone at a fine dining establishment, |
| 1:24.3 | maybe they're making $70, $100,000 a year or more, |
| 1:25.5 | they're going to benefit. |
| 1:27.7 | But the lowest paid workers won't benefit. |
| 1:31.5 | A.L. has reported on social inequality for years. |
| 1:36.4 | And in his latest piece for The New Yorker, he reveals that one of the biggest forces behind the no-tax-on-tips movement isn't a grassroots network of tipped workers, like you might |
| 1:41.6 | expect. It's the National Restaurant Association, which |
| 1:45.1 | some labor advocates call the other NRA, a powerful industry lobbying group. And AOL's reporting shows |
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