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During his 2024 presidential campaign, Donald Trump made quite the spectacle about not taxing tips, a message that seemingly resonated with voters, helping him clinch a narrow victory.
However, the reality of his administration’s policies is becoming increasingly evident. A report from One Fair Wage reveals that at least 1.2 million restaurant workers may find themselves without health insurance due to Republican cuts to Medicaid.
According to One Fair Wage’s report:
In fair wage states, 33% of tipped restaurant workers relied on Medicaid, while in states with subminimum wages, the figure rose to 37%. Alarmingly, the survey revealed that 32% of tipped workers in fair wage states and 34% in subminimum wage states lacked any form of health insurance.
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To assess the impact of the requirement for workers to log 80 hours per month to qualify for Medicaid, One Fair Wage analyzed Census data on restaurant and tipped workers. Their findings showed that 30% of tipped workers and 32% of restaurant workers typically work less than 21 hours a week. This means approximately 850,000 additional workers could lose their Medicaid benefits, bringing the total to around 1.22 million. Shockingly, this could result in about 45% of current Medicaid enrollees in tipped and restaurant jobs losing their health insurance.
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The current Congressional budget reconciliation bill not only slashes Medicaid benefits for millions but also offers a ‘No Tax on Tips’ provision for tipped workers, seemingly as a concession to this vulnerable group. Yet, One Fair Wage reports that a staggering 66% of tipped workers would see no benefits from this ‘No Tax on Tips’ legislation. This is because the proposal predominantly helps those in traditional tipped positions within the food service industry, leaving approximately 1.17 million workers eligible for a tax break—50,000 fewer than the number projected to lose Medicaid under the existing proposal.
In essence, the ‘No Taxes On Tips’ initiative has morphed into ‘No Healthcare For Workers.’ With two-thirds of tipped workers set to miss out on the benefits, many are also at risk of losing their health insurance.
Trump’s campaign promise was to reduce your taxes, but it seems he’s opting instead to take away your healthcare—a classic case of political sleight of hand that has left many Americans outraged with this administration.
What are your thoughts on the Republicans’ actions regarding restaurant workers? Feel free to share in the comments below.
