Overview

• Trump's proposal aims to exempt tips from federal income taxes to gain support from service workers.
• Many tipped workers already pay little to no federal taxes due to low wages and tax credits.
• Labor advocates argue that higher base wages, not tax cuts, are needed to improve workers' livelihoods.
• Some Republicans and labor groups are skeptical of the proposal's economic impact and effectiveness.
• The debate highlights broader issues of wage inequality and the need for comprehensive labor reforms.