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one fair wage
This Tax Season Proved 'No Tax on Tips' Was Never for Workers
Cutting taxes on some tips for some workers is not a solution. Raising wages—and ending the subminimum wage—is.
Apr 18, 2026
During the election, Donald Trump boasted about lowering taxes for working Americans with his “no tax on tips” plan. This tax season, millions of Americans found out it was a scam.
You have to earn money for tax cuts to affect you. A tax deduction only helps if you owe taxes—and most tipped workers earn so little that they barely do. Two-thirds of tipped workers will not even earn enough to benefit. Zero minus zero is still zero. The vast majority of these tax cuts go to the wealthiest taxpayers.
For the workers this policy was supposed to help, the results are already clear.
Take Sherie Cummings, who has poured drinks on the Las Vegas Strip for 20 years. Sherie and her husband, also a bartender, earned $60,000 in tips last year. They expected the full deduction the president promised. They got $25,000 of it. The cap.
Thirteen million tipped workers do not need a tax deduction. They need a raise.
For private jet buyers, the same law delivered something different. Full write-offs on aircraft worth $5 to $10 million. And that write-off is permanent. The tips deduction expires in 2028. The Tax Policy Center projects that 60% of the savings from this law will flow to the top fifth of households—those earning more than $217,000 a year. The wealthiest will save millions. Sherie Cummings is putting her refund into savings because she is afraid of what comes next.
For working people, the real problem was never the tax code. It is wages. The federal subminimum wage for tipped workers has been $2.13 an hour since 1991. It was locked there permanently in 1996 by the National Restaurant Association—what we call “the other NRA.” They spent $2.9 million on federal lobbying in 2020 alone to make sure it stayed there. Which is why tipped workers earn a median income of $15,198 a year. Thirty-seven percent of the national median. Which is why they rely on food stamps at nearly double the rate of other workers. And because workers depend on tips from customers to survive, they put up with what no one should have to. Seventy-one percent of women in the industry report sexual harassment. In subminimum wage states, the rate is double what it is in states that require a full minimum wage with tips on top.
Seven states already require a full minimum wage with tips on top: California, Oregon, Washington, Nevada, Minnesota, Montana, Alaska. It is called One Fair Wage. The restaurant lobby warns that tips would disappear, that restaurants would close, that jobs would vanish. These are scare tactics. The seven states prove them wrong. Tips are the same or higher. Restaurant employment grows faster. Small business growth rates match or beat subminimum wage states.
And restaurant workers have organized and fought for years and won One Fair Wage in Washington, DC, Chicago, and Michigan. The restaurant lobby has fought to block and roll back these wins—in Michigan, they are still trying. But workers keep going. And even where implementation is partial, the numbers are in. DC set an all-time restaurant employment record. Tips grew. Chicago saw more than 850 new restaurant licenses and the fastest pay growth in the country.
Cutting taxes on some tips for some workers is not a solution. Raising wages—and ending the subminimum wage—is. That is why more than 100 labor, community, and civil rights organizations have come together as the Living Wage For All coalition. The fight: Raise the minimum wage to meet the cost of living and end all subminimum wages. In every state. For every worker. Campaigns are active in eight states. Workers have already won. And they will keep winning.
Thirteen million tipped workers do not need a tax deduction. They need a raise. Every shift. Every paycheck. Every year.
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DoorDash Grandma Delivering to Trump Doesn't Change That No Tax on Tips Is a 'Deceptive Ploy'
"The fact that a term like 'DoorDash grandma' exists should be a wake-up call," said the head of One Fair Wage. "It should never exist in the first place."
Apr 13, 2026
While "DoorDash Grandma" made the company's first food delivery to the White House on Monday to promote President Donald Trump's "no tax on tips" policy, the awkward encounter outside the Oval Office not only highlighted critiques of that provision of the GOP budget package but also sparked calls for a living wage and universal healthcare.
"A perfect image of the Trump era: A grandmother has to work at DoorDash in order to get by, while the president decorates his office in gold accent pieces," said Democratic strategist Max Burns, sharing a photo of the delivery on social media.
Saru Jayaraman, president of worker advocacy group One Fair Wage, told Common Dreams that "it's sad, and it's a sign of a failing society—not something to celebrate or turn into a photo op. We've normalized an economy where older people are pushed into gig work just to survive. The fact that a term like 'DoorDash grandma' exists should be a wake-up call. It should never exist in the first place."
"Corporations are paying poverty wages while policymakers offer Band-Aid solutions like 'no tax on tips' instead of paying a living wage," Jayaraman continued. "At the same time, cuts to Medicaid and food assistance are stripping away the safety net workers rely on to get by. This is all pushing people into greater dependence on tips and unstable income. Workers don't need gimmicks—they need living wages, corporate accountability, and real economic security."
Trump and then-Vice President Kamala Harris latched on to the no tax on tips policy during the 2024 campaign, despite warnings from economists and others that it is a "deceptive ploy," as the Economic Policy Institute's David Cooper and Nina Mast put it last year.
"It does nothing to address the low wages, income instability, wage theft, and abuse tipped workers already face," the pair reiterated in February. "Instead, it may undermine efforts to raise tipped minimum wages, push more workers into tipped jobs, increase workloads, and prompt customers to tip less if they believe tipped workers receive special tax treatment."
After related legislation passed the US Senate last year, Jayaraman said that "for all the bipartisan celebration, this bill is a distraction from the real fight... If Democrats want to offer a true alternative, they need to say it loud and clear: It's time to raise the minimum wage and end the subminimum wage once and for all."
A no tax on tips policy was ultimately included in Republicans' so-called One Big Beautiful Bill Act—which, as a recent Institute on Taxation and Economic Policy analysis details, featured tax breaks that primarily benefited wealthy individuals and corporations while cutting programs that serve working families, such as Medicaid and the Supplemental Nutrition Assistance Program.
Specifically, last year's GOP budget package established a temporary federal income tax deduction for tips, capped at $25,000 per year, through 2028. In a February report, the libertarian Cato Institute estimated that "the roughly 3% of tax returns projected to claim the tips deduction in 2026 will receive an average tax cut of about $1,370," and "as a share of after-tax income, the tips deduction broadly benefits those in the middle of the income distribution."
"These provisions also add to the already large number of tax deductions and credits that shield vastly uneven amounts of income from taxation based on family size and childcare arrangements," the Cato report notes. "In addition to the income limits, the tips deduction is only available to occupations that 'customarily and regularly received tips' before 2025."
Sharon Simmons, who wore a red shirt that read "DoorDash Grandma" while delivering McDonald's bags at the White House on Monday, told Trump that she benefited from the policy. In a statement, the company identified her as an Arkansas-based grandmother of 10 who "started dashing in 2022 to earn income while keeping control of her schedule."
During the delivery, the president asked Simmons whether she voted for him—"uh, maybe," she said—and about banning transgender women from competing in sports in line with their gender identity, on which she said she did not have an opinion.
Labor reporter Michael Sainato pointed out that Simmons previously lived in Nevada and advocated for the no tax on tips policy to the US House Ways and Means Committee last year. He also questioned her comments to Trump about having saved over $11,000 on her most recent tax bill.
The dasher claims "$11,000 in savings by not having to claim." You still have to claim tipsYou can only deduct up to $25k in tips, so $11k in savings off of one year didn't happenThe tax savings are actually minimal taxpolicycenter.org/fiscal-facts...
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— Michael Sainato (@msainato.bsky.social) April 13, 2026 at 3:39 PM
While Trump staff and congressional Republicans shared footage of Simmons' delivery to Trump to promote the budget package provision in the lead-up to tax day, US Rep. Dina Titus (D-Nev.) stressed on social media Monday that the president's "policy is severely limited and sunsets in 2028."
"We must make it permanent and increase the minimum wage to support our nontipped workers like childcare, fast food, and retail. We can do both by passing my LIFT Act," said Titus, whose Labor Income Fairness and Transparency Act is backed by One Fair Wage.
"Cutting taxes on tips might make for a good sound bite, but on its own, it's a hollow fix that ignores the real crisis: Wages so low that two-thirds of restaurant workers don't even earn enough to pay federal income taxes," Jayaraman said last year, when Titus introduced the bill. "In a time of skyrocketing costs, workers are drowning and need more than political gimmicks—they need a raise."
"Tips should be a bonus, not a substitute for a living wage," she argued. "By ending all subminimum wages and requiring that all workers be paid a full livable wage with tips on top, the LIFT Act addresses what working people need most: a fair wage, a level playing field, and the dignity that comes with being able to provide for their families."
Some observers on Monday also noted Simmons' appearance on Fox News, during which she acknowledged the financial burden of her husband's 2025 cancer diagnosis.
"Grandma shouldn't have to rely on DoorDash tips to make up for Republicans doubling the cost of healthcare," declared Democrats on the House Ways and Means Committee, sharing a clip of the interview on social media.
Melanie D'Arrigo, executive director of Campaign for New York Health, which advocates for universal, single-payer healthcare, emphasized that "'no tax on tips' does not make up for the fact that no one can afford healthcare."
Historian Timothy Snyder said, "So let’s have universal healthcare and help people live in dignity."
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'A National Disgrace': 19 States to Raise Minimum Wage But Federal Rate Stuck at $7.25
One Fair Wage noted that "tipped workers can still legally be paid as little as $2.13 an hour, a system advocates describe as a direct legacy of slavery."
Dec 31, 2025
Over a third of US states are set to raise their minimum hourly wage in 2026, but worker advocates including Sen. Bernie Sanders on Wednesday decried a federal minimum wage that's remained at $7.25 since 2009—and just $2.13 an hour for tipped workers for over three decades.
Minimum wage hikes are set to go into effect in 19 states on Thursday: Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington.
Increases range from 28 cents in Minnesota to $2 in Hawaii, with an average hike of 67 cents across all 19 states. More than 8.3 million workers will benefit from the increases, according to the Economic Policy Institute (EPI). The mean minimum wage in those 19 states will rise to $14.57 in 2026, up from $13.90 this year.
Three more states—Alaska, Florida, and Oregon—plus Washington, DC are scheduled to raise their minimum wages later in 2026.
In addition to the state hikes, nearly 50 counties and municipalities plan to raise their minimum wages in the coming year, according to the National Employment Law Project (NELP). These include San Diego, California—where the minimum wage for hospitality workers is set to rise to $25 an hour by 2030—and Portland, Maine, where all workers will earn at least $19 by 2028.
However, the federal minimum wage remains at $7.25, and the subminimum rate for tipped workers is $2.13, where it's been since 1991—and has lost more than half its purchasing power since then.
The federal minimum wage has stayed at $7.25 since 2009. In 2026, workers in 19 states and 49 cities and counties an increase. Alabama’s rate will stay at $7.25. 🔗 https://t.co/mrGfPAKba3 pic.twitter.com/EsokVIc6KP
— AL.com (@aldotcom) December 31, 2025
"Tipped workers can still legally be paid as little as $2.13 an hour, a system advocates describe as a direct legacy of slavery," the advocacy group One Fair Wage (OFW) said in a statement Tuesday.
Sanders (I-Vt.) said on social media on the eve of the hikes: "Congratulations to the 19 states raising the minimum wage in 2026. But let’s be clear: A $7.25 federal minimum wage is a national disgrace. No one who works full time should live in poverty. We must keep fighting to guarantee all workers a living wage—not starvation wages."
Yannet Lathrop, NELP's senior researcher and policy analyst, said earlier this month that "the upcoming minimum wage increases are incremental and won’t magically turn severely underpaid jobs into living-wage jobs, but they do offer a bit of relief at a time when every dollar matters for people."
“The bigger picture is that raising the minimum wage is just one piece of a much larger fight for a good jobs economy rooted in living wages and good benefits for every working person," Lathrop added. "That’s where we need to get to."
Numerous experts note that neither $7.25, nor even $15 an hour, is a livable wage anywhere in the United States.
"The gap between wages and real living costs is stark," OFW said. "According to the MIT Living Wage Calculator, there is no county in the United States where a worker can afford to meet basic needs on less than $25 an hour. Even in the nation’s least expensive counties, a worker with one child would need at least $33 an hour to cover essentials like rent, food, childcare, and transportation."
"Advocates argue that policies like President [Donald] Trump’s 'no tax on tips' proposal fail to address the underlying problem of poverty wages," OFW continued. "While the policy has drawn attention, they say it is a headline rather than a solution, particularly since nearly two-thirds of tipped workers do not earn enough to owe federal income taxes."
Frustrated by the long-unchanged $7.25 federal minimum wage, numerous states in recent years have let voters give themselves raises via ballot initiatives. Such measures have been successful even in some red states, including Missouri and Nebraska.
Rising minimum wages are a legacy of the union-backed #FightFor15 movement that began among striking fast-food workers in 2012. At least 20 states now have minimum wages of $15 or higher.
However, back then, "the buying power of a $15 minimum wage was substantially higher than it is today," EPI noted. "In 2025, a $15 minimum wage does not achieve economic security for working people in most of the country. This is particularly true in the highest cost-of-living cities."
In April, US senators voted down an amendment that would have raised the federal minimum wage to $17 an hour. Every Democratic and Independent upper chamber lawmaker voted in favor of the measure, while all Republicans except Sen. Josh Hawley (Mo.) rejected it.
As Trump administration and Republican policies and practices—such as passing healthcare legislation that does not include an extension of Affordable Care Act tax credits, which are set to expire on Wednesday and send premiums soaring—coupled with persistently high living costs squeeze workers, advocates say a living wage is more important than ever.
The issue is underscored by glaring income and wealth inequality in the US, as well as a roughly 285:1 CEO to worker pay gap among S&P 500 companies last year.
"Minimum wage doesn't cover the cost of living," Janae van De Kerk, an organizer with the Service Employees International Union (SEIU) Airport Workers union and Phoenix Sky Harbor International Airport employee, said in a video posted Tuesday on social media.
"Minimum wage doesn't cover the cost of living. Many of my co-workers have to choose between food on the table or health insurance" Janae, Phoenix Sky Harbor Airport service worker No one should have to make that choice.
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— Airport Workers United (@goodairports.bsky.social) December 30, 2025 at 10:34 AM
"Many of my co-workers have to choose between food on the table or health insurance, or the choice between having food and paying the electric bill," van De Kerk—who advocates a $25 hourly minimum wage—continued.
"We shouldn't have to worry about those things," she added. "We shouldn't have to stress about those things. We're willing to work and we wanna work, and we should be paid for our work."
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Living Wage, Affordability Platforms Like Mamdani and Platner’s Have 'Major Electoral Advantage': Polls
Democratic leaders in recent months have refused to throw their support behind candidates who are centering affordability in their campaigns.
Oct 09, 2025
As One Fair Wage launched a new political action committee focused on electing candidates who will push for a true living wage that makes it possible for working people across the US to thrive, the coalition said two new surveys provide a "roadmap for 2026" for candidates and Democratic leaders who are willing to follow it.
The polls were conducted by Democratic polling firm Lake Research Partners on behalf of One Fair Wage (OFW) and the Living Wage for All Coalition, and found "overwhelming support for living wage policies in competitive swing districts and in major cities."
In 18 competitive congressional districts across the country, the first survey found that 55% of respondents supported raising the minimum wage for all workers to $25 per hour, even after being exposed to opposition messaging.
Latino voters showed the strongest support at 72%, along with people of color overall at 64%, women at 60%, and people under age 40 at 59%.
With grocery prices harder to afford than they were one year ago in many swing districts, as another poll showed last week, 56% of people said raising the minimum wage is a high or medium priority for them, including 71% of Democratic voters.
The firm also asked voters in major cities with high costs of living, including New York, Los Angeles, Chicago, and San Francisco, whether they supported raising the minimum wage to $30 in those areas, and found similar results.
Two-thirds said they backed gradually raising the minimum wage for all workers to $30 per hour.
"Support is strongest among the very voters Democrats must mobilize to win in 2026 and 2028: Black voters (80%), Latino voters (73%), young voters under 40 (72%), and women (72%) all back the proposal," Lake Research Partners said.
"If Democrats don’t deliver, the right will continue to exploit the affordability crisis to divide working people. Delivering real affordability is how we restore trust—and how we save democracy.”
Support for the proposal was highest in New York City, where Assembly Member Zohran Mamdani (D-36) has included a $30 minimum wage proposal as part of his mayoral campaign platform—one that's heavily focused on making the city more affordable for all New Yorkers.
Seventy-two percent of New Yorkers said they supported the proposal.
The polling comes as endorsements from lawmakers and advocacy groups that have long been aligned with the Democratic Party have piled up for Mamdani—and as powerful party leaders in New York including US House Minority Leader Hakeem Jeffries, Senate Minority Leader Chuck Schumer, and Sen. Kirsten Gillibrand have continued to refuse to publicly support the democratic socialist.
Saru Jayaraman, president of OFW, warned that a failure to deliver on affordability and living wages before the midterm elections next year will make "saving democracy" from President Donald Trump and the Republican Party impossible.
"We represent 13.6 million restaurant workers in America," Jayaraman told Common Dreams. "And over the last nine months, they've repeatedly asked us: 'You want us to come to a rally on a Saturday to save democracy? I work three jobs and I earn $3 [an hour]. What has democracy done for me lately? Nothing.'"
Along with electing candidates who center living wages and affordability, Jayaraman said in a statement that delivering on the issue "means passing Living Wage for All legislation in every blue state next spring and ensuring no one is left behind."
"If Democrats don’t deliver, the right will continue to exploit the affordability crisis to divide working people," she said. "Delivering real affordability is how we restore trust—and how we save democracy.”
Joining OFW in launching the Make America Affordable Now PAC on Thursday are Democratic candidates who are centering affordability and living wages in their campaigns, including Minnesota state Sen. Omar Fateh (D-62), who is running for mayor of Minneapolis; Seattle mayoral candidate Katie Wilson; and US Senate candidate Graham Platner of Maine.
Like Mamdani, Platner's candidacy has elicited excitement from progressives as he's spoken out against US support for Israel's assault on Gaza and the oligarchy that has seen billionaires like Trump megadonor Elon Musk amass more political power as working people struggle to afford healthcare, groceries, and other essentials. He has put forward a platform that calls to raise the federal minimum wage and index it to inflation.
But Democratic leaders have shown little enthusiasm for Platner's embrace of policies that would make life more affordable for Mainers—despite polls showing that such proposals could help him win a seat that's been held by Sen. Susan Collins (R-Maine) since 1997.
Schumer has led a push for Democratic Gov. Janet Mills to enter the race instead of backing Platner, who in addition to backing broadly popular policies, has shown to be a formidable fundraiser—bringing in more than $4 million since announcing his candidacy in August.
On Thursday, Sen. Bernie Sanders (I-Vt.)—who has endorsed Platner—denounced Democratic leaders for meddling in the race.
"It’s disappointing that some Democratic leaders are urging Gov. Mills to run," said Sanders. "We need to focus on winning that seat and not waste millions on an unnecessary and divisive primary."
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Nearly Half of US Workers Earn Below a Living Wage: Report
"The shocking truth is that half of America cannot afford to live in America," said one leading campaigner for better wages.
Aug 29, 2025
Pro-worker advocacy organization One Fair Wage on Friday released a report that detailed the precarious financial situation facing American workers.
In all, the report found that 67 US million workers, or nearly half the entire American workforce, earn less than $25 per hour, which is what One Fair Wage has calculated constitutes a living wage in 2025.
To put this into perspective, the report notes that the Fight for $15 campaign that started in 2012 to raise the minimum wage to $15 per hour would be way out of date today, as such a wage would only be worth $21 per hour today, which would still be below a living wage.
As if this weren't bad enough, the report outlines three crucial factors that could put further pressure on American workers: US President Donald Trump's tariffs on imported goods, the cuts to Medicaid and the Supplemental Nutrition Assistance Program contained in the Republican budget law, and the fact that tipped workers are in many cases are paid subminimum wages.
Trump's much-hyped "no tax on tips" initiative is a flop in this regard, the report states, because "two-thirds of tipped workers do not earn enough to file income taxes, meaning the vast majority would see no benefit from this measure."
"The shocking truth is that half of America cannot afford to live in America," said Saru Jayaraman, president of One Fair Wage. "The Fight for $15 changed history by lifting up the public imagination and proving that bold demands can become reality. Now workers are calling for something more fundamental, a living wage that actually meets the cost of survival. This Labor Day, thousands of workers are rising up in New York, Chicago, and across the country to demand real solutions and to launch the Living Wage for All campaign to make America affordable now."
In total, the report estimates that a true living wage today would need to be between $25 and $30 per hour.
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Bowing to Restaurant Lobby, DC Guts Voter-Approved Plan to End Subminimum Wage for Tipped Workers
"Call it what it is: a pay cut and a betrayal of the working people," said One Fair Wage.
Jul 31, 2025
With backing from the restaurant lobby, the Washington, D.C. city council voted Monday to gut plans to raise wages for tipped workers, which had already been approved by the public.
It's the second time the council has overturned a wage increase for tipped workers that the public voted for, having already done so once in 2018.
Under federal law, tipped workers are allowed to be paid a much lower minimum wage—just $2.13 per hour compared with $7.25 for nontipped workers. Tipped workers are, consequentially, more likely to live in poverty.
This is the case in Washington, D.C., where, according to data from the Bureau of Labor Statistics analyzed by the Economic Policy Institute, 7.7% of tipped workers live in poverty compared to 2.6% of nontipped workers.
In 2022, D.C. voters overwhelmingly voted to address this problem, supporting Initiative 82, which would have gradually raised the minimum wage for tipped workers—just over $5.35 an hour at the time—to match what other workers receive by 2027.
In 2022, D.C.'s standard minimum wage—which increases each year pegged to inflation—was $16.10. As of 2025, it has increased to $17.95.
As the initiative to raise the tipped minimum wage began, restaurant industry lobbying groups like the Restaurant Association of Metropolitan Washington (RAMW) fought tooth-and-nail to roll it back.
In Jacobin, Raeghn Draper wrote that this group, and others like it around the country, "claim to speak on behalf of restaurant workers, but they are not worker organizations."
Instead, Draper wrote, "They are extensions of the National Restaurant Association (NRA), an industry group historically aligned with large corporate chains like McDonald's, Taco Bell, and Olive Garden—none exactly known for their commitment to workers' rights or well-being."
These groups waged an aggressive disinformation campaign, claiming that by phasing out the subminimum wage, restaurants, crushed by their increasing operating costs, would be forced to close en masse.
The RAMW even touted a survey of its own member restaurants purporting to show that 44% of full-service casual restaurants would have no choice but to close their doors by the end of 2025 due to the policy.
As Draper points out, citing data from an independent investigation by D.C.'s Office of the Budget Director, "the number of D.C. restaurant closures in 2024 did rise slightly compared to the previous year, but restaurant openings also increased, outpacing closures by a margin of two to one."
A study by the EPI likewise found that—despite industry claims that the higher wage requirements were forcing restaurants to lay off their employees—D.C. was seeing more employment growth than other towns in the region without requirements to raise wages.
But media outlets uncritically reported the restaurant industry's narrative about mass closures, and their attempts to "manufacture a crisis," as Draper says, paid off.
While making public appearances with restaurant industry lobbyists, Democratic Mayor Muriel Bowser signed legislation halting the wage increases in June—freezing the tipped minimum wage at $10 an hour. She pushed for a full repeal, which would have knocked the tipped wage back down to $8 an hour. But the city council voted it down.
On Monday, despite fierce protests from workers and unions, the city council voted 7-5 to freeze the tipped wage at $10 until July 2026, when it will increase by a measly five cents. They also voted to dramatically slow the tipped wage increases to just 5% each year until 2034, when it will be capped at 75% of the standard minimum wage.
Members of the council, as well as many media outlets, including Axios and The Washington Post, described the decision as a "compromise" between employers and workers. RAMW, which lamented that it was "not a full repeal," has portrayed it that way, though it nevertheless described it as a "win for the industry."
Fair wage activists, however, described it not as a compromise, but an assault on a hard-won democratic victory.
"In what world is this a compromise?" asked One Fair Wage, one of the groups that campaigned for the initiative. "Call it what it is: a pay cut and a betrayal of the working people."
"D.C. Council just voted to overturn the will of the people and freeze wages for tipped workers," said the Fair Budget Coalition in a post on X following the vote. "As rents and other costs rise, it is a CHOICE to maintain a subminimum wage for struggling D.C. residents."
According to EPI, a person living in Washington, D.C. needs to earn just under $31 an hour to afford the cost of living. The average wage paid to tipped workers like bartenders, waiters, and waitresses falls several dollars short of this.
"The voters told us what they wanted when they voted overwhelmingly for I-82—twice—and this is not it," said Brianne Nadeau, one of the council members who voted against reversing the wage hikes. "Restaurant workers and the organizations that represent them have been fighting this battle for wage protections for years, and they shouldn't have to keep fighting it. And this council should not keep on telling the voters they don't know what's best for themselves."
"The council chose corporate lobbyists over tipped workers," said One Fair Wage. To the council members who voted for it, they said: "We see you. We won't forget."
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Senate-Passed No Tax on Tips Bill a 'Distraction From the Real Fight'
"We cannot tax-break our way out of an economy that continues to pay people less than it costs to live," said the group One Fair Wage.
May 21, 2025
After the U.S. Senate on Wednesday unexpectedly passed a bill that would exempt some tips from federal income tax, one labor group that campaigns for raising wages warned that while the bill would offer moderate relief to some Americans, it does not address the poverty wages facing many in the service sector—a message the group has hit on in the past.
"For all the bipartisan celebration, this bill is a distraction from the real fight," said Saru Jayaraman, president of One Fair Wage, in a statement on Wednesday. "If Democrats want to offer a true alternative, they need to say it loud and clear: it's time to raise the minimum wage and end the subminimum wage once and for all."
The bill passed by the Senate on Wednesday, the No Tax on Tips Act, would establish a new federal tax deduction of up to $25,000 for cash tips reported to employers by employees for the purposes of withholding payroll taxes. Qualified cash tips include "any cash tip received by an individual in the course of such individual's employment in an occupation which traditionally and customarily received tips on or before December 31, 2023," according to the bill text. Employees who made more than $160,000 in the prior tax year are not able to claim the deduction.
Currently, for tax purposes, tips are treated the same as regular wages. The bill was cosponsored by a bipartisan group of lawmakers and was passed by unanimous vote. It will now go to the House.
The idea of getting rid of federal taxes on tipped wages was touted by U.S. President Trump on the campaign trail and then-presidential candidate Vice President Kamala Harris also embraced the idea.
An analysis published last year by Yale's Budget Lab found that a "meaningful share" of tipped workers already pay nothing in federal income tax and that tipped work is a very small slice of the labor market.
Less than 4% of workers in the bottom half of hourly wage jobs, people making below $25 an hour in 2023, are in tipped jobs. Thirty seven percent of tipped workers in 2022 made so little that they paid zero in federal income tax before factoring in credits, according to Yale's analysis, and for non-tipped occupations, the equivalent share was much smaller—only 16%.
A report from One Fair Wage released last summer found that the annual income of tipped restaurant workers was so low that 46% of them do not earn enough to pay income taxes based on their individual income.
According to analysis from the Economic Policy Institute (EPI), in addition to helping relatively few workers, exempting taxes on tips could potentially undercut pay for many more workers, would encourage tax avoidance, and would reduce pressure on employers to increase base pay, among other concerns.
According to One Fair Wage, the true relief from the country's affordability crisis will come through raising wages, not through "tax gimmicks."
"We cannot tax-break our way out of an economy that continues to pay people less than it costs to live," the group added.
EPI also calls ending taxation on tips "a distraction from proven methods for supporting low-wage workers, like raising the minimum wage and eliminating the subminimum wage for tipped workers."
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Low-Wage Workers to Democratic Leaders: Fight for Us or Face 'Consequences'
"Democrats must act now to protect workers and show that they are fighting for the people who need them most," said one economic justice leader.
Nov 19, 2024
With Democratic leaders grappling with how to move forward following this month's devastating electoral losses and governors in the party moving to resist President-elect Donald Trump's policies, low-wage workers are planning on Wednesday to send a clear message to several Democrat-led statehouses: Prioritize workers and fair wages, or "face the consequences."
The national economic justice group One Fair Wage, which works closely with restaurant industry and other service workers, is organizing direct actions in Detroit, New York, and Springfield, Illinois, demanding that Democratic leaders in blue states "act decisively" to protect working people from Trump's anti-regulation, pro-corporate agenda.
The group said tipped service workers, advocates, and labor leaders will take part in the actions, in which participants will deliver an open letter calling for the passage of legislation to raise the minimum wage and eliminate subminimum wages.
"Workers in blue states are raising their voices because they cannot afford to wait any longer," said Saru Jayaraman, co-founder and president of One Fair Wage. "With a cost-of-living crisis squeezing families and an anti-worker Trump administration on the horizon, Democratic leaders must act boldly to protect workers and provide economic security. If they fail to prioritize wages and worker protections, they risk losing the trust—and the votes—of the very people they need to win."
The actions come after preliminary demographic data from the election showed working-class voters from a variety of racial backgrounds swung toward Trump. Two-thirds of Trump voters said they had to cut back on groceries because of high prices, according to a New York Times/Siena College survey, compared to only a third of people who supported Vice President Kamala Harris. Latino-majority counties shifted toward the Republican former president by 13 percentage points, and Black-majority counties did the same by about three points.
"Last week's electoral results made one thing clear: Voters overwhelmingly prioritize wages and affordability."
"Last week's electoral results made one thing clear: Voters overwhelmingly prioritize wages and affordability," said Jayaraman.
The actions were planned amid reports that U.S. Ambassador to Japan Rahm Emanuel, a key adviser to former President Barack Obama, is among those considering a run for chair of the Democratic National Committee—a plan that one former adviser to Sen. Bernie Sanders (I-Vt.) said seemed aimed at ensuring "the Democratic Party continues to lose working-class voters." Other possible contenders include former Maryland Gov. Martin O'Malley and, reportedly, progressive Wisconsin Democratic Party Chair Ben Wikler.
One Fair Wage said that following Democratic losses across the country, and with Republicans set to take control of the White House and both chambers of Congress in January, Democratic leaders at the state level must "act boldly on behalf of working families."
In Michigan, workers will call on Gov. Gretchen Whitmer to uphold the state Supreme Court's decision to raise the minimum wage and eliminate subminimum wages for tipped workers.
At the Illinois state Capitol, advocates plan to push for statewide legislation to extend fair wages for all workers, building on Chicago's minimum wage reforms.
In New York, One Fair Wage will lead the call for Gov. Kathy Hochul to "safeguard tipped and immigrant workers from the looming anti-worker policies of the incoming Trump administration."
The workers and supporters will deliver their demands to state lawmakers as well as hold "solidarity turkey giveaways for struggling families let down by elected officials."
Since the election, some Democratic governors have pledged to resist Trump's far-right agenda. California Gov. Gavin Newsom called a special legislative session aimed at "Trump-proofing" the state by finalizing climate measures and protecting reproductive and other kinds of healthcare. Govs. JB Pritzker of Illinois and Jared Polis of Colorado announced a coalition that will resist Trump's deportation plan and reinforce key state institutions.
The governors' plans have not specifically mentioned efforts to protect workers from Trump's policies. The president-elect attempted to pass regulations that would make tips the property of employers during his last term, and the National Restaurant Association has pledged to revive such efforts in the next four years.
"There's a glaring omission in these efforts: low-wage and tipped workers," Angelo Greco, a political strategist working with One Fair Wage, told Common Dreams. "When Democrats say they will fight for the most vulnerable, who exactly does that include if not the people earning the lowest wages and facing the greatest economic instability?"
"Tipped workers—many of whom are women, people of color, and immigrants—continue to be paid below the minimum wage in a system rooted in the legacy of slavery," Greco added. "They face Trump's imminent rollback of Biden-era workplace protections, and now restaurant workers are on the front lines of his anti-labor rampage. If governors truly want to protect workers, they must include tipped workers in their efforts."
Jayaraman called on Democrats to "act now to protect workers and show that they are fighting for the people who need them most. Ignoring these demands will lead to alienated voters and further political losses."
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'We Are Unafraid': In Face of Trump Win, Champions of Working Class Vow Epic Fight
"We must raise the standard of living for our members and the entire working class through unity, solidarity, and working-class power," said UAW president Shawn Fain. "No matter who is in the White House."
Nov 14, 2024
The results of last week's U.S. elections were cataclysmic for the Democratic Party, which lost control of the White House and Senate as the Republicans gained a trifecta, but economic justice advocates on Wednesday said that for many working people, the fight for a better standard of living and a political system that places people over Wall Street profits remains the same.
United Auto Workers (UAW) president Shawn Fain acknowledged in a letter to members that while the election outcome was not one that "our union advocated for, and it's not the outcome a majority of our members voted for, our mission remains the same."
"We must raise the standard of living for our members and the entire working class through unity, solidarity, and working-class power," said Fain. "No matter who is in the White House."
Noting that "in a democracy, the four most important words are: The People Have Spoken," Fain suggested that the Democratic Party did not convince a key constituency—working people, including an estimated 78% of Americans who live paycheck-to-paycheck—that it represents their interests, and as a result handed the presidential victory to President-elect Donald Trump.
While the UAW endorsed Vice President Kamala Harris and Fain campaigned with her, he said, "for us, this was never about party or personality. As we have said consistently, both parties share blame for the one-sided class war that corporate America has waged on our union, and on working-class Americans for decades."
Trump ran an openly xenophobic campaign, but won the support of low-income voters from a range of ethnic backgrounds as he demonized undocumented immigrants and made outlandish, racist claims about Ohio residents from Haiti, sticking to his longtime narrative that immigration—not corporate greed—is to blame for the country's housing crisis, economic inequality, and stagnant wages.
"The task for the Democrats is what it should have been all along: remaking the party into the party of the bottom 90%... the party that rejects Elon Musk and the entire American oligarchy."
As numerous progressives have pointed out since the election, the Biden administration has introduced a host of pro-worker policies and Harris unveiled numerous economic justice proposals during her brief campaign—but her decision to campaign with billionaire businessman Mark Cuban and unveil a more Wall Street-friendly tax proposal have been criticized moves that highlighted the Democratic Party's close ties to rich donors and muddied her message to working families.
With the Democratic Party still taking part in the "one-sided class war" referenced by Fain, the UAW leader said that the union "stand[s] today where we stood last week."
"We stand for bringing back American jobs," said Fain. "We stand for taking on corporations that break their promises to American workers. And we stand against the same things we've always stood against. We will never support the destruction of the union movement. We will never support efforts to divide and conquer the working class by nationality, race, and gender. We will never support handouts to the ultra-wealthy or paying for it by cutting crucial federal investments."
"We are unafraid to confront any politician who takes actions that harm the working class, our communities, and our unions," he said.
Fain's comments came as progressive lawmakers including Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.) spoke at an event titled Delivering for the Working Class.
While the caucus is set to be in the minority in the House and Senate for at least the next two years, the senators used the event to rally Democratic leaders to "learn the right lessons" from Trump's victory.
As Democrats decide who they answer to, Warren asked, "Is it going to be a handful of billionaires? We know what kind of policy they want to set. Or are we going to show voters that Democrats are the ones who are willing to unrig this economy?"
Sanders suggested that Fain's rallying of the UAW's more than 400,000 members will also be a key to fighting Trump's agenda, including Republicans' plans to make cuts to Social Security and Medicare and his likely reversal of Biden's pro-worker policies.
"The antidote to enormous economic and political power on the part of the few is mass organizing at the grassroots level among working people—to stand up and fight for an economy that works for all," said Sanders.
Just after the election last week, Sanders became one of the first members of the Democratic caucus to release a statement on the party's major losses, driving home the same message he has repeated during his decades in public service: "It should come as no great surprise that a Democratic Party which has abandoned working-class people would find that the working class has abandoned them."
On MSNBC on Wednesday, Rep. Pramila Jayapal (D-Wash.), the chair of the Congressional Progressive Caucus, said the election results in several red states proved that many of Trump's supporters prioritized working class issues.
"Voters actually want the populist, popular ideas that we have been pushing at the Progressive Caucus, certainly, for quite some time," said Jayapal. "They went to the ballot in three states that voted for Donald Trump... and they voted for a higher minimum wage, they voted for paid sick leave."
Voters in Alaska and Missouri approved ballot measures requiring a higher minimum wage and demanding that employers provide paid sick leave; Nebraska voters also supported a measure allowing workers to earn paid sick leave.
Former Labor Secretary Robert Reich on Thursday also took a close look at voting figures, writing at his Substack newsletter that the election didn't deliver "a very big mandate" to Trump as the president-elect claimed, or even "a 'red shift' to Trump and the Republicans."
"It was a blue abandonment," he wrote. "We now know that 9 million fewer votes were cast nationwide in 2024 than in 2020. Trump got about a million more votes than he did in 2020 (700,000 of them in the seven battleground states). That's no big deal... The biggest takeaway is that Biden's 9 million votes disappeared... So what happened to the 9 million?"
Reich posited that 9 million potential voters refused to vote for Trump, but also didn't turn out for the Democratic Party because they were left thinking, "They don't give a damn about me."
"The task for the Democrats is what it should have been all along: remaking the party into the party of the bottom 90%—the party of people who don't live off stocks and bonds, of people who are not CEOs or billionaires like Mark Cuban, the party that rejects Elon Musk and the entire American oligarchy," he wrote. "Instead, the Democratic Party must be the party of average working people whose wages have gone nowhere and whose jobs are less secure."
He continued:
Blue-collar private-sector workers earned more on average in 1972, after adjusting for inflation, than they are earning now in 2024. This means today's blue-collar workers are on average earning less in real dollars than their grandparents earned 52 years ago.
Yet the American economy is far larger than it was 52 years ago. Where did the additional money go? To the top. So what's the Democrats' task? To restructure the economy toward more widely shared prosperity.
In his statement on Wednesday, Fain said the lives and daily struggles of many working class voters are unchanged after the election.
"Today, our members clock in to the same jobs they clocked into last week," said Fain. "You face the same threats—corporate greed, Wall Street predators, and a political system that ignores us. And we are driven by the same force, as outlined in our UAW Constitution generations ago: 'The hope of the worker in advancing society toward the ultimate goal of social and economic justice.'"
Fain urged union members to get involved in "political action on every level of government, in every state, in every sector has an impact on every contract, every organizing drive, and every standard we win as a union," while Sanders implored the Democratic Party to urgently "determine which side it is on in the great economic struggle of our times."
"It needs to provide a clear vision as to what it stands for," wrote Sanders in a Boston Globe op-ed on Tuesday. "Either you stand with the powerful oligarchy of our country, or you stand with the working class. You can't represent both."
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Harris Urged to Back $17 Minimum Wage During Debate With Trump
"This would make a major difference for the affordability crisis so many face," said Rep. Ro Khanna.
Sep 10, 2024
Congressman Ro Khanna expressed hope on Tuesday that Vice President Kamala Harris' pledge to "fight to raise the minimum wage" on her newly released list of policy proposals would not be her last word on the matter, and urged her to speak out more specifically by backing a $17 minimum wage at the first presidential debate between her and Republican nominee Donald Trump.
Khanna (D-Calif.) said the Democratic nominee must send a clear message to many "voters who are living paycheck to paycheck in swing states," by showing that she is committed to improving their day-to-day lives with concrete economic policies.
Attaching a dollar amount to her promise to raise the minimum wage would show voters that she aims to "make a major difference for the affordability crisis so many face," said Khanna.
Several battleground states, including Pennsylvania, Wisconsin, and North Carolina, have minimum wages that match the federal minimum pay—$7.25 per hour—which hasn't been updated in 15 years.
Harris backed a $15 federal minimum wage when she ran for president in 2020, eight years after fast food workers launched the Fight for $15 national campaign.
But last year, Sen. Bernie Sanders (I-Vt.) and Rep. Bobby Scott (D-Va.) proposed raising the federal floor for wages to $17 per hour within five years, with Sanders saying, "A job should lift you out of poverty, not keep you in it."
According to the Massachusetts Institute of Technology's Living Wage Calculator, even people in states with relatively low costs of living would need to earn significantly more than $15 per hour to enjoy a decent standard of living.
In both Mississippi and Alabama, for example, one adult with no children would need to earn more than $19 per hour to make a living wage. Two working adults raising one child would need to make $17.89 each, but they would need to make more than $21 each per hour if they had a second child.
"Raising our federal minimum wage from $7.25 to $17 is not radical," said Liz Shuler, president of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), last year.
At HuffPost on Tuesday, Dave Jamieson noted that providing specifics about her plans to raise the wage floor would further clarify for swing state voters how Harris differs from her GOP opponent on this issue, as Trump has "never had a coherent vision for the minimum wage" and "has contradicted himself so often on the issue that The Washington Post's fact-checking operation once created a 'guide to all of Donald Trump's flip-flops on the minimum wage.'"
While campaigning for president in 2016, Trump said at various points that he did not support any federal minimum wage, that raising it would be a "big, big problem," and that that he was "looking at" raising it.
One Fair Wage (OFW), which has campaigned on ending the subminimum wage of just $2.13 for tipped workers, applauded Harris for her support for that policy, saying it offers a clear contrast to Trump and could appeal to 14 million service workers, including millions in swing states, who could sway the election.
"While both campaigns have called for the elimination of taxes on tips, this policy alone would only benefit about one-third of tipped workers," said the group. "Most workers wouldn't see any real relief, as their earnings are too low for them to benefit from a tax cut. That's why the Harris-Walz campaign's commitment to ending the subminimum wage stands out—it acknowledges that eliminating taxes on tips is not enough, and that workers need a true wage increase by ending the $2.13/hr subminimum wage for tipped workers, allowing them to earn a full minimum wage with tips on top."
"By taking this bold stance, the Harris-Walz campaign is aligning itself with a growing movement of workers and advocates fighting to create an economy where everyone can thrive," said OFW.
Saru Jayaraman, president of the organization, added that the policy would "lift millions of people out of poverty, close racial and gender pay gaps, and provide a foundation for economic security that all working people deserve."
"Raising wages resonates with millions of Americans who have been left behind by the current system, and the Harris-Walz campaign's commitment to this issue will not only energize voters but set the stage for a fairer, more equitable economy," she added.
Last week, Sanders told Rolling Stone that in the last eight weeks of the campaign, he hopes Harris will "expose Trump for the fraud that he is" and "develop an agenda for working-class people and trade unionists that will be very much in contrast with Trump."
"Raising the minimum wage to a living wage," said Sanders, "will improve wages for many millions of lower-income Americans."
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