January 1, Trump Delivers Tax Relief For Tipped Workers

Wyatt’s Take

• Trump’s ‘no tax on tips’ promise means more money in workers’ pockets.
• New guidance allows up to $25,000 in tax-free tips for many jobs.
• Main Street is finally catching a break after years of being left behind.

President Trump’s no-tax-on-tips plan is now law, putting more cash in the pockets of wait staff and other tipped workers. Treasury Secretary Scott Bessent toured restaurants to explain how Main Street finally gets relief after Wall Street’s long run.

“It’s part of the president’s agenda and it’s what I call parallel prosperity. Wall Street has done great. Upper income taxpayers and business have done great. Now, Main Street and working Americans are going to do great,” Bessent said.

The Treasury Department will soon issue a detailed guide showing which jobs get the tax break, making up to $25,000 in tips tax-free for workers. Bessent said this move is wide-ranging and the government has the data to make sure people don’t cheat the system. He calls it a step toward solving the affordability crisis and making life easier for working folks.

Workers were hit hard under Joe Biden, Bessent said, but now things are turning around. He urges workers who see more take-home pay to pay down debt first and then build savings.

“First thing would be, if you have any high-cost debt, pay that down,” Bessent said.

Trump’s top adviser says the goal is rewarding hard work, making overtime and tips pay off more for those clocking in extra hours. Bessent stressed that Main Street finally gets to play catch-up, after years when only the richest saw gains. Job growth in manufacturing and construction is coming, especially for areas that make it easier to build and support American energy.

Bessent also shared how his own first job was busing tables for tips, making this issue close to home. He noted falling egg prices as another example of a solutions-focused administration, and said more will be done on food costs as farmers and ranchers work with the government.

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Wyatt Matters

Keeping more of what you earn is a step toward a fairer economy. When regular folks see relief and real opportunity, it puts the American Dream within reach for families all across the heartland.