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taxes
The Tip Trick: How the Trump Budget Starves the Working Class
It takes programs that millions rely on—Medicaid, food assistance, student aid—and sacrifices them to fund tax breaks that primarily benefit those who already have the most. It’s a redistribution in reverse.
May 22, 2025
Imagine a woman in her late 20s, raising a young kid and working two jobs. On weekday mornings, she waits tables at a chain diner just off the highway. On weekends, she picks up banquet shifts at a hotel near the airport. Some weeks she hits 40 hours. Most weeks she doesn’t. Her schedule is built around whoever else calls off, whichever babysitter shows up, and how many tips she can pull in when customers don’t walk out on the check. She’s not lazy. She’s tired. She’s not failing. She’s just barely holding on.
She doesn’t ask for much—just enough to stay ahead of the next crisis. One sick day, one bounced check, one broken car door, and it all starts to unravel. Like nearly 60% of Americans, she’s living paycheck to paycheck. This isn’t some outlier story. It’s the American norm, life for millions of workers whose labor keeps the country running, even as their budgets can’t absorb a single emergency.
Last week, she saw a headline. The new House budget plan would eliminate federal income tax on tips. She read it twice. Finally, something for workers like her. Finally, a win.
This budget offers token relief while delivering sweeping cuts.
But what she didn’t see—what the headline didn’t say—is that while she might save a few hundred dollars come tax season, the same bill cuts the healthcare, food, and education programs that actually keep her afloat. It’s not a lifeline, it’s a tradeoff. And it’s a bad one.
Early Thursday morning, May 22, after days of internal negotiations and public brinkmanship, the House narrowly passed the “One Big Beautiful Bill,” a 1,100-page tax and spending package drafted with support from the Trump White House. Despite defections from within their own ranks, GOP leadership managed to push the bill through with no Democratic support and just enough Republican votes to avoid collapse. The measure now moves to the Senate, where further changes are likely, but the core architecture is intact.
The bill includes more than $3.8 trillion in tax cuts, most of which go to the wealthiest households and largest corporations. It makes permanent the 2017 Trump tax cuts, increases the estate tax exemption to $15 million per person, and expands loopholes for business income. According to the Institute on Taxation and Economic Policy, the top 1% of households would receive an average annual tax cut of approximately $79,000.
And the waitress? If she reports $10,000 in tips next year, she might see a refund boost of around $700. That’s her win. That’s what she gets.
But here’s what she could lose.
If her hours drop below 80 in a given month, and she can’t prove every one of them with pay stubs or employer forms, she could lose her Medicaid coverage. Under the latest version of the bill, these nationwide work requirements are no longer delayed until 2029. They’re scheduled to take effect as early as the end of next year. These requirements don’t just ask that you work. They ask that you document it, every month, without gaps. Miss a report, and your health insurance disappears. No phone call, no warning, just a closed file and an empty pharmacy counter.
If she misses work because her kid’s school is closed or a sitter falls through, she might lose Supplemental Nutrition Assistance Program (SNAP) benefits too, especially if she doesn’t fill out the right paperwork on time or fails to meet a new state threshold. The revised bill raises the age limit for mandatory work compliance and eliminates long-standing exemptions for parents. The moment her child turns seven, she’s treated like someone with no caregiving responsibilities at all. And for the first time in decades, states will be required to help fund those benefits. If they can’t, or choose not to, those benefits could disappear.
If she tries to go back to school to finish the associate’s degree she started, she may no longer qualify for a Pell Grant. The bill raises the minimum course load for a full award from 12 credits to 15, more than a full-time load at most colleges. For a working mother juggling jobs, that’s not just a higher bar, it’s a locked gate. She’d have to choose between working more hours to afford tuition or taking more classes she can’t pay for to receive aid. Either way, she loses.
And that’s the pattern. Across the board, this budget offers token relief while delivering sweeping cuts. It takes programs that millions rely on—Medicaid, food assistance, student aid—and sacrifices them to fund tax breaks that primarily benefit those who already have the most. It’s a redistribution in reverse. It shifts risk downward and wealth upward. It wraps itself in the language of freedom and choice, while quietly dismantling the systems that offer working people a shot at stability.
This isn’t a misunderstanding of how poverty works. It’s a bet that most people won’t notice until it’s too late. It counts on workers like her being too busy, too tired, or too stressed to read the fine print. It counts on the headlines focusing on the tip exemption, not the Medicaid paperwork that knocks her off coverage. Not the missed deadline that shuts off SNAP. Not the registration block that forces her to drop out of community college. It makes the punishment quiet and the payoff loud.
We know who this helps. And we know who it hurts.
As of late 2024, approximately 78.5 million Americans were enrolled in Medicaid or CHIP. In fiscal year 2023, 42.1 million participated in SNAP each month, and school meal programs served more than 4.6 billion lunches. The majority who rely on these services are children, seniors, and working families. By contrast, according to the Yale Budget Lab, fewer than 2.5% of U.S. households would benefit from the tip tax exemption, and only about 5% of low- and moderate-wage workers are employed in traditionally tipped occupations. And even among them, the average gain won’t cover a single unexpected car repair. The math doesn’t work. The logic doesn’t hold. But the politics do.
Because the waitress at the diner won’t get a press release when her SNAP balance goes to zero. She won’t get a spotlight when her kid’s lunch bill doubles or when she finds herself sitting in the ER without coverage. She’ll just keep showing up. Keep working. Keep holding the line with less and less help.
And that $700 refund?
It won’t pay for the inhaler when her daughter’s asthma flares up. It won’t buy a month of groceries when benefits are cut. It won’t fix the brake line on the car that barely starts. It won’t cover tuition when she’s one semester away from finishing a degree. It won’t save her when the safety net snaps under her feet.
No matter how “beautiful” they say the bill is, it won’t hold her life together when everything else is falling apart.
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Tell Congress to Stop Spending Your Tax Dollars on Nuclear Weapons
We have the answer to realize significant cost savings, while simultaneously promoting sound fiscal policies that benefit us all and don’t threaten the survival of the human race.
Apr 16, 2025
This week was the week that our 2024 taxes were due in order to fund the fiscal year 2025 federal budget and thus our nation’s priorities. This year’s budget represents the final Biden budget. It comes at a time when our country is in a deliberate state of chaos instituted by the current administration. Under the non-elected efforts of the Department of Government Efficiency and current cabinet, we find punitive and seemingly random disjointed cutting of essential services and vital programs in addition to international aid that cuts to the core of who America is.
U.S. Congress has just passed a budget resolution requiring $1.5 trillion in savings to be realized over the next 10 years. Ultimately, budgets are moral documents. How do the current cuts, in addition to planned cuts in entitlement programs such as Medicaid, Medicare, and Social Security, address our needs and follow a moral compass? How does funding nuclear weapons factor in when addressing our needs and priorities?
This year’s federal tax expenditure for all nuclear weapons programs will be $110,344,000,000. This figure was released on Tax Day in this year’s U.S. Nuclear Weapons Community Cost Project. That amounts to $3,499 per second. This year will see an increase of roughly $15.8 billion over FY 2024. Congress prides itself in being fiscally responsible. Yet when cities like Detroit are spending over $114 million on nuclear weapons programs, Atlanta over $245 million, Chicago over $961 million, and the impoverished Navajo nation of roughly 113,000 people are spending over $18 million, where is the rationale, fiscal responsibility, and sanity?
Unlike a nuclear missile that cannot be recalled after launch, the nuclear arms race and existing arsenals can be reversed and nuclear weapons can be eliminated.
The continuation of this out-of-control escalation is fueled by the myth of deterrence with dramatic increases in weapons delivery systems and missile defeat and defense expenditures. The latter is the present day version of former President Ronald Reagan’s “Strategic Defense Initiative” or “Star Wars.” Today’s version continues the elusive and easily outfoxed goal of hitting a bullet with a bullet to defend us coupled with a complex early detection system. With roughly 12,331 nuclear weapons in today’s global arsenals, the world remains closer to nuclear war than at any point in the past 80 years since the bombings of Hiroshima and Nagasaki.
The Bulletin of the Atomic Scientists puts our current risk at 89 seconds to midnight and nuclear Armageddon. That risk assessment comes from the current geopolitical turmoil; climate change; and evolving disruptive technologies that increase the risk of nuclear war either by intent, miscalculation, or accident presenting a very real and present danger. Everything and everyone we care about is threatened with the distinct possibility of ending the human race.
Ultimately, the only way to prevent a nuclear war is to abolish these weapons. Unlike a nuclear missile that cannot be recalled after launch, the nuclear arms race and existing arsenals can be reversed and nuclear weapons can be eliminated. What is needed is the political will. The people need to speak, and when the people lead, the leaders will follow.
Fortunately, there is a U.S. grassroots movement, Back From the Brink, bringing diverse communities together to eliminate nuclear weapons. This movement calls on the United States to take a leadership role in bringing together the world’s nuclear powers to negotiate a time-bound, verifiable, and complete elimination of all nuclear weapons. It includes four precautionary measures to safeguard against nuclear war until that goal is achieved. These include renouncing the option of using nuclear weapons first; ending the sole, unchecked authority of any U.S. president to launch a nuclear attack; taking U.S. weapons off of hair-trigger alert; and canceling the plan to replace the entire U.S. nuclear arsenal with enhanced weapons.
Anyone can endorse this campaign. Presently 495 organizations, 78 municipalities and counties, eight state legislative bodies, 430 municipal and state officials, and 44 members of Congress have endorsed this campaign.
Last week Rep. Jim McGovern (D-Mass.) introduced U.S. House Res. 317, which lays out how we can fundamentally reform U.S. nuclear weapons policy and achieve a world free of nuclear weapons. In addition to supporting the policy points of Back From the Brink, this resolution supports: the maintenance of a de facto global moratorium on nuclear testing, protecting communities and workers affected by nuclear weapons by fully remediating their deadly legacy of environmental contamination past and current, and actively pursuing a just economic transition for the civilian and military workforce involved in this entire nuclear cycle.
We have the answer to realize significant cost savings, while simultaneously promoting sound fiscal policies that benefit us all. With life itself hanging in the balance we all must demand a meeting with our legislative leaders, urging them to endorse this legislation. If they refuse, we must ask why they are willing to put everything at risk?
Correction: An earlier version of this article said that taxpayers would pay $3,498,985.29 per second for nuclear weapons this year. The actual figure is $3,499 per second. The piece has been updated to reflect this.
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Trump and Musk Are Making It Harder for the IRS to Catch Wealthy Tax Cheats
Musk and Trump claim to be sage businessmen, but it would be hard to find a business owner in America that would dismantle their accounts receivable department when their wealthiest clients still owe them money.
Mar 29, 2025
The Trump administration and Elon Musk’s DOGE have begun dismantling the Internal Revenue Service, or IRS, beginning with 6,700 layoffs. Their stated plan is to cut half of the agency’s workforce.
Their biggest cuts appear to be in the Large Business and International division, which audits wealthy individuals and companies with more than $10 million in assets. These are essentially the workers that make sure billionaires and corporations pay their taxes.
Musk and President Donald Trump claim to be sage businessmen, but it would be hard to find a business owner in America that would dismantle their accounts receivable department when their wealthiest clients still owe them money.
The real beneficiaries of a weak IRS are billionaires and large global corporations.
So make no mistake: These cuts will cost taxpayers a lot more than they save.
Gutting the IRS will hurt the middle class by reducing the taxes billionaires and corporations pay for our public services. It passes the bill to working class taxpayers to cover veteran’s services, infrastructure, national parks, and defense.
When it comes to taxes, the wealthy aren’t like you or me. Most wage earners have our state and federal taxes withheld from our monthly paychecks. Ninety percent of taxpayers use the simple standard deduction filing and hope we get a refund.
But billionaires and multimillionaires are different. Their income comes mostly from investments and assets—which they can hide. They hire experts from the “wealth defense industry”—an armada of tax lawyers, accountants, and wealth managers—to minimize their taxes and maximize inheritances for their fortunate children.
They deploy anonymous shell companies, complex trusts, and bank accounts in tax havens like Bermuda, Cayman Islands, and South Dakota to aid their clients in minimizing taxes—tools not available to ordinary taxpayers. According to the Tax Justice Network, over $21 trillion is now hidden in tax havens like these.
A 2021 exposé by ProPublica found that more than half of the 100 wealthiest U.S. billionaires use a complex trust system to avoid estate taxes, which at the current level only kicks in for people with wealth over $13.99 million.
This aggressive tax dodging by the superrich has resulted in an enormous “tax gap” between what they owe and what’s collected. For the last few years, this gap is estimated at $700 billion a year—almost the size of the Pentagon budget.
Working and middle class taxpayers will pick up the slack, or see their services cut. Most likely some of this gap will be added to the $36 trillion national debt, requiring us to pay on an installment plan.
In previous decades, the IRS had the expertise to keep up with the schemes that billionaires and transnational corporations use to dodge their taxes. But over the last two decades, their capacity to catch wealthy crooks and grifters has been decimated by cuts.
Things started to turn around again in 2021, when Congress voted to invest in enforcement. And already, the investment was starting to pay off. A year ago, the IRS announced they’d recovered $482 million from millionaires who hadn’t paid their debts.
Trump and Musk are now reversing these modest gains.
As the agency people love to hate, the IRS was an easy target for Trump’s anti-government attacks. But the real beneficiaries of a weak IRS are billionaires and large global corporations. With an understaffed IRS, their tax shell games can operate without scrutiny—something seven previous IRS commissioners from both parties recently spoke out against.
We may not agree about everything in the federal budget, but most people agree the wealthy should pay their fair share of whatever expenses we share. And it’s hard to catch the criminals if you remove all the cops on the beat.
The billionaires will be popping their champagne bottles. Even with the higher tariffs on European bubbly, they can afford the best.
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