
What began as a campaign promise in Nevada became law this summer with the passage of the One Big Beautiful Bill Act: "No taxes on tips" is now nationwide. But even as pundits debate its merits, progressive cities are quietly undoing the tax cut—and few are noticing.
Progressive cities such as Washington, D.C., and Chicago have recently eliminated the tipped-wage credit, which lets employers pay tipped employees below minimum wage as long as tips filled the gap. Now, New York City is the next battleground in a push to mandate a one-size-fits-all minimum wage.