Wed Jul 02 20:08:14 UTC 2025: Here’s a news article summarizing the text, highlighting the conflict between the proposed tax break on tips and potential benefit cuts for restaurant workers:

**Trump’s “No Tax on Tips” Plan Sparks Controversy: Restaurant Workers Fear Benefit Cuts**

**Washington D.C.** – A bipartisan effort to eliminate taxes on tips, a long-held promise by former President Trump, is gaining momentum in Congress, with both House and Senate bills proposing significant tax breaks for tipped workers. While championed as a boon for servers and bartenders, the proposal faces growing criticism from worker advocacy groups and restaurant employees themselves, who worry about the potential consequences of accompanying cuts to vital safety net programs.

The proposed legislation, mirroring a campaign promise also supported by former Vice President Kamala Harris, would allow workers to deduct reported tips from their taxable income, with the Senate version imposing limits based on income. Proponents, including the National Restaurant Association, argue the move would put more money in the pockets of millions of tipped employees.

However, critics warn the tax break is a double-edged sword, as the bill also includes measures that could significantly reduce access to Medicaid and SNAP benefits – programs disproportionately relied upon by restaurant workers due to low wages and unstable hours. A major concern is the addition of work requirements for Medicaid eligibility, mandating 80 hours of work per month for able-bodied adults aged 19 to 64.

“More tipped restaurant workers would lose their Medicaid than would gain small tax benefits. This is not the right solution,” said Saru Jayaraman, founder of One Fair Wage.

Many restaurant workers, often earning the federal tipped minimum wage of just $2.13 per hour (before tips), struggle with fluctuating schedules and inconsistent tipping, making it difficult to meet the new work requirements. Data from Harvard Kennedy School’s The Shift Project indicates that one in five service sector workers do not get as many hours as they need.

“I’m actually having a hard time…from giving me my full like four or five days a week, to now just one day a week. It really varies week to week,” said Jessica Ordenana, a server at a Chili’s Restaurant in Queens, New York.

Furthermore, declining consumer spending in the restaurant sector, driven by economic uncertainty, is leading to reduced hours for many workers, exacerbating the problem.

The Center on Budget and Policy Priorities estimates that the bill could lead to millions losing access to SNAP benefits, further threatening the financial stability of low-wage restaurant workers. One Fair Wage estimates that 45% of restaurant workers currently enrolled in Medicaid could lose their health insurance.

The debate highlights the complex realities faced by restaurant workers, who often rely on a combination of low wages, tips, and government assistance to make ends meet. Critics argue that the proposed tax break, while seemingly beneficial, could ultimately leave many worse off if they lose access to crucial support services.

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