Trump is proposing to make tips tax-free. What would that mean for workers?

WASHINGTON (AP) — Former President Donald Trump’s proposal to exclude tips from federal taxes is getting strong reviews from some Republican lawmakers. But major questions remain about the impact of the policy and how it would work. What’s certain is that a change in the taxation of tips would affect millions. The U.S. Bureau of Labor Statistics estimates there are 2.24 million waiters and waitresses across the country, with tips making up a large percentage of their income. While Trump assumes that a tax cut would help workers, Democrats have generally endorsed efforts to increase hourly wages instead.