Institute on Taxation and Economic Policy (ITEP)

February 12, 2026

Economic Policy Institute: Everything You Need To Know About “No Tax on Tips”

ITEP Work in Action

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The 2025 Trump tax bill that created the tipped income deduction simultaneously enacted massive cuts to health care, energy, and food assistance programs that will cause tremendous harm for millions of low-income households, including some with tipped workers—all to finance tax cuts for the ultrawealthy.

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