Taylor Van Kirk, press secretary to Vice President JD Vance, said on X that the Big Beautiful Bill fulfills Vance's promises to voters by delivering measures including tip tax cuts and border security.
"Vance highlights the campaign promises fulfilled in the Big Beautiful Bill," said Van Kirk, Press Secretary to the Vice President. "We're going to cut taxes on tips...We're going to secure the border...All of those promises are in this bill. Promises made, Promises KEPT!"
According to the Internal Revenue Service (IRS), the taxation of tips has long been a contentious issue in the United States, particularly for service industry workers who depend heavily on gratuities for their income. Under current IRS regulations, employees must report any tips received, and these are considered taxable income. This includes cash tips, tips received from credit card payments, and tips distributed through tip pools. The IRS mandates that employees report tips of $20 or more in a month to their employer by the 10th day of the following month. These reported tips are then included in the employee's gross income and are subject to federal income tax, Social Security tax, and Medicare tax.
Tip income constitutes a significant portion of earnings for many service industry workers. As per the U.S. Bureau of Labor Statistics, as of May 2023, the median hourly wage for waiters and waitresses, including tips, was $14.00. However, the base pay for tipped employees can be as low as $2.13 per hour in some states, with the expectation that tips will make up the difference to reach the federal minimum wage. This reliance on tips means that any changes to tip income policies can have a substantial effect on workers' overall earnings.
A 2021 survey by the Pew Research Center found that 16% of Americans have earned money through an online gig platform. Among these gig workers, 58% reported that the income was essential or important for meeting basic needs. This highlights the financial reliance many have on gig work and underscores the impact of tax policies on their livelihoods.
According to O'Dwyer's PR, Taylor Van Kirk was appointed press secretary to Vice President JD Vance after serving as Vice President at MAD Global Strategy. Van Kirk joined MAD Global in 2022 with expertise in media relations, government affairs, and strategic communications. Her previous roles include communications director for Vance’s Senate and vice-presidential campaigns, VP at Mercury, majority press secretary for the Ohio House of Representatives, and public relations coordinator at Dentons.