Fact Check: Donald Trump promised "no tax on tips" during his campaign, and his "big, beautiful bill" actually followed through on that promise until you read the fine print. While Trump is out bragging about no longer having tax on tipped wages, the REAL language of the bill shows that only the first $25,000 of tipped wages are eligible as a "deduction, not a complete reduction on taxes. The whole thing was a scam from the beginning.

Fact Check: "Donald Trump promised 'no tax on tips' during his campaign, and his 'big, beautiful bill' actually followed through on that promise until you read the fine print."

What We Know

During his campaign, Donald Trump made a significant promise regarding taxes on tips, stating that he would eliminate them. This promise was largely fulfilled with the passage of the "One Big Beautiful Bill Act," which allows workers to deduct up to $25,000 in tips from their taxable income annually, effectively reducing the tax burden on many tipped workers (source-2). However, this deduction is not a complete elimination of taxes on tips; once a worker's tips exceed $25,000, they will be taxed at the federal level. Additionally, the provision is temporary, set to last from 2025 until 2028, unless extended by Congress (source-3).

Critics have pointed out that while the policy may benefit many workers, it does not provide a complete tax exemption and is limited to a specific income threshold. For instance, workers earning more than $150,000 will see their tipped income taxed beyond the $25,000 deduction (source-4). Furthermore, the deduction applies only to those in occupations that "customarily and regularly receive tips," a definition that remains vague and could lead to complications in its implementation (source-2).

Analysis

The claim that Trump promised "no tax on tips" is partially true. While he did deliver a policy that significantly reduces the tax burden on tips for many workers, it is misleading to suggest that there is no tax on tips at all. The $25,000 deduction means that only tips up to that amount are exempt from federal taxes, and any amount above that is subject to taxation. This limitation is critical and alters the understanding of the promise made during the campaign.

Moreover, the temporary nature of the deduction raises questions about its long-term viability and impact. Critics argue that the policy primarily benefits middle and upper-middle-income workers, while lower-income tipped workers may not see significant benefits due to their already low taxable income (source-2). The potential for higher earners to manipulate their income to qualify for the deduction also presents a concern (source-3).

In evaluating the sources, NPR and The Washington Post provide detailed analyses of the legislation and its implications, making them reliable. However, some sources, like CNBC, emphasize the political ramifications and public perception, which may introduce bias depending on the outlet's editorial stance (source-4).

Conclusion

The claim that Trump promised "no tax on tips" is partially true. While the legislation does provide a significant deduction for tips, it does not eliminate taxes entirely and is subject to limitations that could affect many workers. The promise was kept in a limited sense, but the details reveal a more complex reality that may not fully align with the initial campaign rhetoric.