Some segments of the U.S. restaurant industry don't support President Donald Trump's proposal to eliminate federal taxes on tips , saying it would help too few people and obscure bigger issues in the way tipped workers are paid.
The Independent Restaurant Coalition, which represents nearly 100,000 restaurant and bars, has appealed to Congress to reconsider the proposal, which is part of the president's spending bill . Even some workers who rely on tips say they oppose making them tax-deductible.
"I think there's a huge hole in this concept of 'no tax on tips' because a lot of restaurant workers aren't receiving tips in the first place," said Elyanna Calle, a bartender in Austin, Texas, and president of the Restaurant Workers United union. "It's not helping most kitchen workers, and oftentimes those are the people who are being paid the least."
Tips included in sprawling tax cuts package
For now, making tips tax-free appears to have broad support among lawmakers. Both Trump and his Democratic rival in last year's U.S. presidential election, former Vice President Kamala Harris, campaigned on the concept.