4.8 • 861 Ratings
🗓️ 20 August 2025
⏱️ 47 minutes
🧾️ Download transcript
The “Big, Beautiful Bill” promised no tax on tips, but that might actually keep service-industry wages lower. Eyal Press is a contributing writer for The New Yorker, and he joins host Krys Boyd to discuss why restaurant owners will benefit most from eliminating income taxes on tips, why the minimum wage for restaurant workers is so incredibly low and the powerful lobby that is pushing this issue. His article is “Check Your Bill.”
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| 0:00.0 | When you compare it with other services we pay for in the United States, the culture we've built around tipping starts to look very strange. |
| 0:17.0 | Let's just take restaurants where staffers wait on you at your table. At the end of your |
| 0:21.7 | meal, you calculate, say, 20% of the total cost of the food itself and add that on for your server. |
| 0:28.1 | Technically, this is entirely optional. But in restaurants that offer the federal minimum wage |
| 0:33.4 | for tipped employees, your server's base pay is $2.13 an hour, which makes not tipping a little |
| 0:41.1 | like paying for a gallon of paint and some brushes and expecting the painter you've hired to do |
| 0:45.5 | your walls for nothing, or not nothing, but $2.13 an hour. From KERA in Dallas, this is think. I'm Chris |
| 0:53.1 | Boyd. For many workers, gratuities are not some bonus gift, but an essential component of their income, |
| 0:59.9 | which ironically plays into the fact that more support for the section of the One Big |
| 1:04.4 | Beautiful Bill Act that eliminated tax on tips through 2028 came from the National |
| 1:09.2 | Restaurant Association and industry lobby, then from |
| 1:12.2 | workers' groups. It sounds counterintuitive, right? Ayal Press is here to explain. He's been |
| 1:17.9 | investigating this for The New Yorker, where he is a contributing writer. His article on the |
| 1:22.0 | subject is called Check Your Bill. Ayal, welcome to think. Thank you so much. It's great to be here. So there's been |
| 1:29.0 | bipartisan interest in ending income taxes on tips. President Trump proposed it in the last |
| 1:34.8 | election cycle, but Kamala Harris endorsed a version of the same policy. It's easy to understand |
| 1:39.9 | the appeal to tipped workers. Why has this not been a serious consideration in the past? |
| 1:46.8 | I think it hasn't been a consideration because tip workers have kind of been politically invisible. |
| 1:53.1 | And, you know, whatever one makes of Trump's proposal to end taxes on tips, and in my article, |
| 1:59.1 | I cast considerable skepticism on it, talking to economists. |
| 2:03.6 | But the fact of the matter is he recognized an opportunity. |
| 2:06.6 | And he announced it in Las Vegas. |
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