As a mom, mentor, and entrepreneur who has spent decades championing women, I’ve learned this: When women rise, so do their communities, and that rise doesn’t come from handouts; it comes from hustle, heart, and hard-earned dollars.
But for millions of women working in America’s service economy, that climb gets steeper every time the federal government reaches into their tip jar.
Women make up nearly two-thirds of all service workers in the United States. They’re the backbone of our daily lives—serving meals, styling hair, cleaning hotel rooms, pouring coffee—all while juggling second jobs, night classes, or children on their hips.
These women aren’t cashing in their stock options. They are relying on tips to survive, yet the federal government is taxing their hard-earned money.
In some states, tipped workers earn as little as $2.13 an hour. With wages this low, tips are the only thing keeping many of these women above water. And then we tax the tips that are supposed to make up the difference? Most of the over 4.3 million tipped workers in America earn $17,000 to $24,000 a year before taxes.
Take away 10-20% of their tips, and we’re taking away any chance many women have of keeping themselves, and their families afloat.
Eliminating the federal income tax on tips would immediately put hard-earned money back into the pockets of working families. That’s why we at America First Policy Institute (AFPI) support the proposed policy of not taxing tips—because it restores hope. It’s bold. It’s unapologetically America First. And it shows that, finally, Washington is catching up to common sense and working for the people.
This policy says to every woman working a double shift, chasing her dream, or raising a family: We see you; we respect you, and we are willing to fight for YOU!
My team built a business from the ground up. I know what it means to count every dime. I also know what a $20 tip can mean at the end of a 12-hour shift. That’s groceries, diapers, and hope.
And we’ve seen it firsthand through our work mentoring women across the country. Women are building businesses, studying well past midnight, and holding it all together for their families, yet still losing part of their income to a system that refuses to evolve.
If we’re serious about empowering women, not with slogans, but with solutions, then this is it.
Want to support working families? Let them keep their tips.
Want to reward hustle and personal responsibility? Let them keep their tips.
Want to send a message that America still values hard work? Then pass the bill, and stop taxing the most personal, direct form of appreciation for hard work there is.
This is not a handout. It’s a long-awaited push in the direction of dignity, trust, and economic freedom. No government program. Just a simple, powerful reform that respects the people who keep this country moving.
To every woman out there clocking in, holding her head high, and showing up with grace and grit: We honor you. We believe in you. We’re fighting to build a future for you that is finally met with fairness. And we want you to keep your tips.
It’s time for America to tip its hat to the women who work for tips. Let them keep the money they’ve earned.
Stacey Schieffelin is chair of the America First Women’s Initiative, senior advisor at the Center for the American Worker, and director of talent & culture for America First Policy Institute.