A higher minimum wage would benefit workers far more than 'no tax on tips': 10-year increase in income for affected workers
| 10-year increase | |
|---|---|
| No tax on tips | $39,143,000,000 |
| Raise the Wage Act | $700,000,000,000 |
Note: Since the no tax on tips provision is slated to end after 2028, the total benefit of the measure is for four years, not 10. The total benefit of the Raise the Wage Act is $70 billion times 10 years.
Source: EPI analysis of Joint Committee on Taxation, “Estimated Revenue Effects Of Tax Provisions To Provide For Reconciliation Of The Fiscal Year 2025 Budget As Passed By The House Of Representatives On May 22, 2025” and Zipperer, Ben, The Impact of the Raise the Wage Act of 2025, Economic Policy Institute, April 2025.