Alex Pfeiffer, Deputy Assistant to President Trump, said that the "Big Beautiful Bill" provides historic tax relief for working- and middle-class Americans through provisions such as eliminating taxes on tips and overtime pay. The statement was made on X.
"No Tax on Tips and No Tax on Overtime are popular no-brainer policies," said Pfeiffer, Deputy Assistant to the President and Principal Deputy Communications Director. "The Big Beautiful Bill is the largest working and middle class tax cut in history."
According to the Internal Revenue Service (IRS), tips are classified as taxable income and must be reported by employees who receive $20 or more in tips during any given month. This includes gratuities in the form of cash, credit card payments, or contributions from tip pools. The IRS states that such tips must be reported to employers by the 10th day of the following month and are subject to income tax, Social Security, and Medicare taxes.
The U.S. Bureau of Labor Statistics reported that, as of May 2023, the median hourly wage for waiters and waitresses—including tips—was $14.00. In certain states, base pay for tipped workers may be as low as $2.13 per hour, relying on tips to bridge the gap to the federal minimum wage. Because of this dependency, any policy adjustments related to tip taxation can notably affect workers’ overall income.
According to a 2021 survey conducted by the Pew Research Center, 16% of American adults have earned income through an online gig platform. Among those gig workers, 58% considered that income either essential or important for covering basic living costs. These figures highlight the extent to which tax policies can influence the financial well-being of individuals engaged in gig work.
Pfeiffer serves as Deputy Assistant to the President and Principal Deputy Communications Director at the White House. Prior to his current role, he founded Pfeiffer Public Affairs and worked as Communications Director for MAGA Inc., the largest pro-Trump Super Political Action Committee (PAC), while also advising the Trump 2024 campaign. His professional background includes several years as an investigative producer at Fox News Media for Tucker Carlson Tonight.