Why "no tax on tips" may engrain tipping culture

The new no tax on tips provision within the One Big Beautiful Bill allows tipped employees to deduct up to $25,000 from their federal taxes. Lawmakers pushed for the provision to increase take home pay for the nation’s tipped employees. Data suggests it’ll boost average take home pay by $1,300 annually. However, some industry experts and tipped employees feel this provision has the potential to do more harm than good.