Archive July 2, 2025

Restaurant workers say ‘no tax on tips’ undermined by benefits cuts

United States President Donald Trump’s big tax and spending bill has faced backlash from both Democrats and fiscal hawks in his own party. But one proposal that has received rare bipartisan support from the start — eliminating taxes on tips.

The Senate bill passed on Tuesday, which mirrors the House bill passed last month, would deliver this campaign promise from Trump and had also been proposed by his Democratic opponent, former Vice President Kamala Harris.

The House plan lets workers deduct all reported tips from their taxable income, while the Senate version sets limits — $18,500 for individuals or $25,000 for joint filers — and phases it out for higher earners. The tax break would expire at the end of 2028.

If this bill passes, filers could deduct some or all of those tips starting in 2026.

Economists forecast that cutting tax on tips could increase the federal deficits by $100bn over the next decade.

Many restaurant workers continue to earn the federal tipped minimum wage, or subminimum wage, of just $2. 13 per hour nationally. It is slightly higher in places like New York at $3. 55 per hour. The law assumes that tips will bridge the gap to reach the $7. 25 federal minimum wage.

A survey cited by the White House and conducted by a fintech firm found that 83 percent of restaurant workers support a no-tax-on-tips policy. Trump’s plan has been endorsed by the National Restaurant Association.

“The inclusion of the No Tax on Tips and No Tax on Overtime provisions recognises the value of our dedicated workforce. More than two million tipped servers and bartenders stand to benefit, while the overtime measure rewards the commitment of over 13 million hourly team members across the sector,” Michelle Korsmo, president and CEO of the National Restaurant Association, told Al Jazeera in a statement.

The bill at the surface promises to put more money in the pockets of servers, bartenders, and other tipped workers. But it has been criticised by worker-centric advocacy groups and restaurant workers themselves, who caution against embracing it too quickly because it also comes with cuts to Medicaid and SNAP, which workers in the restaurant industry disproportionately rely on.

“That is like one of like the biggest fears I have right now. I rely on SNAP myself. I rely on Medicaid. At one point, I didn’t have insurance because of the whole sub-minimum wage, ” Jessica Ordenana, a server at a Chili’s Restaurant in Queens, New York told Al Jazeera.

According to One Fair Wage, about 66 percent of tipped workers in the US don’t earn enough to pay federal income tax, so eliminating tax on tips wouldn’t help the majority of restaurant workers.

To put this in perspective, a worker earning $2. 13 per hour, working 40 hours a week for 52 weeks, would earn just $4,430. 40 annually. Employers are legally required to make up the difference if tips don’t bring workers to $7. 25/hour, totalling $15,078 per year. Federal income taxes must be paid by those who make more than $14,600 annually. Many workers still fall short due to inconsistent schedules and unreliable tipping.

Work requirements complications

Restaurant tipped workers overwhelmingly rely on services like SNAP and Medicaid, and will now face new work requirements to get them.

For instance, the “One Big Beautiful Bill” includes a Medicaid work requirement that obligates able-bodied adults aged 19 to 64 to work at least 80 hours per month to remain eligible.

For many restaurant workers, this is simply not feasible. Not because of unwillingness, but because their hours depend on consumer demand.

According to Harvard Kennedy School’s The Shift Project, which studies workplace trends, one in five service sector workers reported having not as many hours as they would like and saw a 34 percent fluctuation in the number of hours week to week.

“I’m actually having a hard time at Chili’s because they went from giving me my full like four or five days a week, to now just one day a week. It really varies week to week,” Ordenana said.

“When I ask for another day on the schedule [the manager] tells me, yeah, yeah sure. And then they don’t even put me on the schedule. So last week, I didn’t work at all,”  Ordenana said.

Demand for eating out has started to slump as Americans tighten purse strings in the face of a slowing economy and uncertainty over the impact of Trump’s tariffs.

Consumer Price Index data showed that spending on eating out was flat for three months from February to April and has started to decline heading into the middle of the year.

Consumer spending is projected to drop by 7 percent over the middle of the year, according to KPMG’s Consumer Pulse report.

As a result, One Fair Wage estimates that 45 percent of restaurant workers currently enrolled in Medicaid could lose their health insurance because of the possible downturn in hours because of slumping demand.

“More tipped restaurant workers would lose their Medicaid than would gain small tax benefits. This is not the right solution,” Saru Jayaraman, founder of the advocacy group One Fair Wage told Al Jazeera.

“Why are these workers on Medicaid to begin with? Because they earn a sub-minimum wage and can’t afford to take care of themselves. ”

SNAP benefits face a similar threat. The Center on Budget and Policy Priorities, a left-leaning think tank, forecasts that the tax bill could lead to as many as 11 million people, including restaurant workers, losing access to critical benefits. The House bill would cut $300bn from SNAP over the next 10 years and the Senate bill would cut $211bn.

“Those cuts have to come out of benefits or eligibility. There is just no way that cuts to administrative costs, to streamline waste, fraud, and abuse, or whatever the talking points are about thinking. Those are benefits to eligible people. To achieve that kind of savings, you have to cut benefits to people. There’s no way around it. And that’s devastating,” Ed Bolen, director of SNAP State Strategies at Center on Budget and Policy Priorities, told Al Jazeera.

Nationwide, 18 percent of restaurant workers rely on SNAP benefits, including Ordenana.

Lily Allen ‘can’t remember’ how many abortions she’s had in heartfelt admission

Singer Lily Allen has revealed to pal Miquita Oliver that she can’t remember how many abortions she has had, saying she ‘used to get pregnant all the time’

Lily Allen has said she cannot remember how many abortions she has had. The singer opened up to best friend Miquita Oliver as the pair discussed birth control.

The shock confession by the 40-year-old star came on their Miss Me? podcast. Lily claimed her reproductive system was a ‘complete disaster area’ and said she would fall pregnant “all the time. “

As the duo discussed contraception, Lily said: “I just remember I have an IUD [contraceptive coil] now. I think I’m on my third, maybe fourth, and I just remember before that it was a complete disaster area. “

She then said: “Yeah, I’d get pregnant all the time, all the time,” before Miquita, 41, revealed she didn’t know her best pal had terminated a pregnancy previously.

Lily Allen spoke on her Miss Me? podcast(Image: BBC Sounds/Youtube)

Joking, Lily then started to sing Frank Sinatra’s My Way. She changed the words as she sang: “Abortions I’ve had a few… but then again… I can’t remember exactly how many. “

Article continues below

She then chuckled as she tried to recollect. Lily went on: “I can’t remember. I think maybe like, I want to say four or five. “

And the mum-of-two’s confession led to Miquita sharing her own journey. “I’ve had about five too! ” she said. “Lily, I’ve never. I’m so happy I can say that, and you can say it, and no one came to shoot us down, no judgment. We’ve had about the same amount of abortions. “

As Lily continued, she admitted an ex had once paid for her to have an abortion. She claimed she thought it was “so romantic” at the time.

Miquita responded: “I actually think that is romantic! Do you not think that’s romantic? ,” leading Lily to reply “Am I an idiot? What? Getting rid of the problem? ‘

“No but if you’re both like ‘let’s not do this. I don’t want it no neither do I, I don’t have any money well I can sort that out… ‘” Speaking of her own experience, Miquita said she felt “very excited” after her first abortion. “I felt like I was like a woman. “

Lily later expressed her annoyance at feeling the need she had to justify terminating a pregnancy. “It actually irritates me, and I’ve said it before on the record,” she said.

Article continues below

“I’ve seen memes going around sometimes, on Instagram from pro-abortion accounts or whatever, whenever this conversation comes up, and suddenly you start seeing people posting things about extraordinary reasons for having an abortion.

‘Like: “My aunt had a kid that had this disability,” or whatever, “if she went full term it was going to kill her, so we have to. ” It’s like, shut up! Just: “I don’t want a f***ing baby right now. ” Literally: “Don’t want a baby” is enough reason. “

Truth behind Spice Girls ‘feud’ ahead of Mel B’s star-studded wedding

EXCLUSIVE: Ahead of Melanie Brown’s wedding this weekend, there had been reports that two Spice Girls stars had been snubbed, but the Mirror can now reveal the truth

Friendship never ends, which is certainly the case for the Spice Girls(Image: Getty Images)

Spice Girls icon Melanie Brown MBE will marry her fiancé, Rory McPhee, this weekend, with one of her bandmates in attendance. Rory, a hair stylist, got down on one knee and proposed to the Leeds-born icon in October 2022, four years after the pair started dating one another.

The singer who found fame as one-fifth of the chart-mauling girl group has never shied away from discussing her love for Rory, with the pair often posing for loved-up social media snaps. Even at Melanie’s 50th birthday party, the couple looked smitten with one another as they danced in front of guests, including bandmates Melanie C and Emma Bunton, who had travelled to West Yorkshire for the occasion.

Now, the couple are preparing to say “I do” in one of the most iconic landmarks in the UK, St Paul’s Cathedral in London. Each year, only a handful of couples are given permission to marry at the same location where the late Diana, Princess of Wales, and now King Charles tied the knot.

Melanie will marry her fiancé, Rory McPhe,e this weekend
Melanie will marry her fiancé, Rory McPhe,e this weekend

But reports had suggested that some of Melanie’s bandmates would be attending the ceremony due to a feud. Now, the Mirror can reveal the truth behind the speculation. A source close to the band told us: “There’s no snub, the girls are all on friendly terms with one another, but it’s no secret that Geri is busy with Christian at Formula One and Victoria is extremely busy with her fashion brand.”

It’s believed that Victoria, who has since carved out a name as one of the biggest fashion designers, has work commitments in another country. Meanwhile, Melanie C, known as Sporty Spice, is currently on tour and will be performing in Rødovre, eastern Denmark.

Article continues below
Reports claimed that Geri Horner wouldn't be attending due to a feud but the Mirror can reveal this isn't the case
Reports claimed that Geri Horner wouldn’t be attending due to a feud but the Mirror can reveal this isn’t the case(Image: PA)

It was reported by the MailOnline that Geri would not be attending due to a fractured relationship with Melanie, but this isn’t the case, according to our source. Instead, Ginger Spice will be alongside her F1 husband, Christian Horner, at the British Grand Prix, which is being held at Silverstone Circuit between July 4 and July 6.

Melanie is said to have known Rory for decades, describing him as a “family friend”. Speaking about their relationship, she revealed they grew close after she returned to her hometown of Leeds after previously living in Los Angeles.

The For Once In My Life songstress said: “When I went back to England, he would come over and give me hair treatments… And as he was nurturing my curls back, I guess he was nurturing my trust and belief in a relationship. “

Fashion designer Victoria has commitments with her business, meaning she is unable to attend, but is said to be gutted she can't make the event
Fashion designer Victoria has commitments with her business, meaning she is unable to attend, but is said to be gutted she can’t make the event(Image: INSTAGRAM)

The singer recently delighted fans after celebrating her hen do in Tunisia alongside some of her closest friends, beloved mum Andrea, sister Danielle and her eldest daughter, Pheonix. Dressed in her iconic leopard print bikini, the star, who was awarded an MBE for services to charitable work and supporting vulnerable women through Women’s Aid, described the event as her “Zen party. “

Melanie’s bandmate, Victoria, was originally set to design her wedding gown, but instead, another designer has now been given the honour. And although she’s known for her flamboyant personality and leopard print, the Mirror understands that Melanie will be going for a traditional white dress for the stunning occasion.

Despite speculation, there is no feud between any of the band who have all sent their well wishes to Melanie
Despite speculation, there is no feud between any of the band who have all sent their well wishes to Melanie(Image: PA)

British designer Josephine Scott is believed to be the designer behind the dress for Melanie’s UK ceremony, while she will be wearing another dress, believed to be by American designer Justin Alexander, for her ceremony in Morocco, which will take place later in the month.

Article continues below

Speaking about the occasions, Melanie told Women’s Wear Daily: “This will be a very formal, English wedding where I want to feel regal and very proper. All the ladies will wear hats or fascinators. Then, I’m having a second ceremony abroad, which will be more informal, sexy and beautiful. “