Opinion - Let's make ‘No Tax on Tips' fair for all tipped workers
When President Donald Trump proposed 'No Tax On Tips' on the campaign trail last year, it struck a chord with millions of Americans. The idea resonated because it addressed something real: working people trying to keep up with rising costs and doing everything they can to stay ahead.
But as Congress begins drafting this policy, there's one key group at risk of being left out: millions of tipped workers who get tipped every day for delivering meals, groceries and more.
Most people don't realize this, but current versions of the 'No Tax On Tips' legislation would only apply to certain employees, like restaurant servers. It would leave out independent contractors, including the drivers and delivery workers so many of us rely on daily.
That means there would still be a tax on tips for someone like Maliki, a mother of three in Florida who runs a small business and delivers with DoorDash to help cover her son's diabetes care. Or Joe, a retired dad and grandfather in Wisconsin who started making deliveries to help pay for his kids' college expenses and stay ahead of rising living costs.
They're not alone. More than 7 million Americans work as independent contractors in the app-based economy. Many rely on app-based platforms to earn extra income on a schedule that fits their lives. A recent report from the Senate Health, Education, Labor and Pensions Committee also found that one in three Americans engages in some form of independent work. This isn't a small group — it's a major part of today's workforce.
People like Maliki and Joe choose this model because it gives them control. They can be their own boss, work when it makes sense for them, and adjust their hours as life demands. And when they're tipped, they keep 100 percent of it. That extra money often goes straight to rent, gas, groceries or family needs. A tax break on those tips would go a long way in helping them reach their goals.
And here's the simple truth: a $5 tip given to a restaurant server is no different than a $5 tip given to a delivery driver. Both represent appreciation for service. Both help workers make ends meet. The tax code should treat them the same.
In 2022 alone, delivery and rideshare platforms contributed an estimated $212 billion to the U.S. economy, and that number could rise to $500 billion over the next decade. Our laws cannot ignore this huge and growing slice of our economic landscape.
This discussion isn't just about taxes. It's also about the future of independent work and the benefits workers need. One idea gaining traction is portable benefits — programs that offer things like health care, paid time off and retirement savings that move with workers from job to job. These programs are already being piloted in states like Pennsylvania and Georgia, with bipartisan support. In Congress, newly introduced 'safe harbor' legislation could help pave the way for more innovation on this front.
Still, we don't need to wait for every detail of a new system to do what's right today. Let's not make the perfect the enemy of the good. Congress has the opportunity to make this tax policy more inclusive right now.
That's why we're helping app-based workers to speak up. Through our DashRoots advocacy network, more than 40,000 'Dashers' have already written to their representatives to ask for change. These are everyday people trying to make their voices heard, and they deserve to be listened to.
Lawmakers on both sides of the aisle say they want to help working Americans. Including all tipped workers in this tax break is one way to follow through on that promise.
Let's make sure the people we tip every day get the fair treatment they've earned.
Elizabeth Jarvis-Shean is Chief Corporate Affairs Officer at DoorDash.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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