Tipping Culture Spiraling Out of Control: Could Harris Make It Worse
If you’ve recently enjoyed a summer getaway outside the U.S., you might have been pleasantly surprised by a different kind of experience—a break from the tipping culture that’s now deeply entrenched in America. Unlike in many other parts of the world, where tipping is minimal or even nonexistent, the United States has earned a reputation for being one of the most tipping-happy nations on the planet. It’s not just the number of people we tip, but also the ever-increasing amounts we’re expected to leave behind.
“Tipping in America is out of control,” says Michael Lynn, a professor at Cornell University who specializes in consumer behavior and tipping culture. “We tip more occupations and leave larger tips than any other country.”
Now, in an unexpected twist, tipping could become an even bigger burden on American consumers, thanks to a rare moment of bipartisan agreement between former President Donald Trump and Vice President Kamala Harris. Both have thrown their support behind the idea of exempting tips from federal income taxes, a move that could have significant consequences for consumers and workers alike.
While the idea might sound like a win for tipped workers at first glance, it’s a policy that could end up backfiring on everyone. Customers are already feeling the pressure of inflated tip expectations that have skyrocketed since the pandemic. As restaurants shut down or limited indoor dining, many Americans started tipping more generously for takeout, delivery, and even no-contact services. Meanwhile, businesses introduced touchless payment systems that subtly—or not so subtly—nudged customers to leave bigger tips.
What used to be a humble tip jar on a counter has morphed into digital screens that suggest tipping 20% or more on even the smallest purchases. It’s no longer just about tipping your waiter; now you’re expected to tip at fast-food joints, coffee shops, and even self-service kiosks. The relentless push for tips has left many consumers feeling drained—both financially and emotionally.
According to a Pew Research Center survey from last November, a staggering 72% of U.S. adults believe that tipping is expected in more places than it was five years ago. The other 28%? It’s hard to imagine they’ve been out in public lately. In a WalletHub survey from February, three out of four respondents said tipping has gotten out of control, describing the experience as not just a financial burden but also a source of psychological stress.
Now, Trump and Harris want to throw fuel on the fire by pushing for a tax exemption on tips. Sure, it might simplify things for employers and eliminate the discrepancy between reported and unreported income from tips. But it could also incentivize employers to pay even lower wages, knowing that workers might be able to pocket more of their tips tax-free. And if this proposal goes through, expect to see more tip jars popping up everywhere you turn.
Today, you might tip your bartender or barista, but under this plan, who’s to say the supermarket cashier, the dental hygienist, or even the plumber won’t be next in line for a tip? When there’s a chance to earn tax-free income, the pressure to tip could extend far beyond the usual suspects.
Vice President Harris has suggested that the exemption would only apply to “service and hospitality workers,” but anyone familiar with the political landscape knows that such limits rarely hold. The next step could be expanding the exemption to all workers who receive tips, particularly those who earn below a certain income threshold.
The proposal is essentially a giveaway to a select group of workers, particularly those in swing states like Nevada, where tipping is a way of life in the casino and hospitality industries. For politicians like Trump and Harris, this isn’t about fairness or supporting low-income workers across the board; it’s about securing votes in a crucial battleground state.
If they were genuinely interested in helping low-wage workers, they’d focus on measures like increasing the standard deduction or expanding the Earned Income Tax Credit. But instead, they’re pushing a tip-tax loophole that benefits a narrow group while spreading the cost across the entire country.
Just like the subsidies that big oil companies receive for blending ethanol into gasoline, this proposal would deliver big benefits to a concentrated group while quietly sticking the tab to the rest of us. The cost of this lost revenue will have to be made up somehow, likely through higher taxes or cuts to public services. But don’t expect that inconvenient truth to make headlines during the election season.
In a year where Trump and Harris are at odds on just about everything, it’s telling that they’ve found common ground on this misguided scheme. It’s a bad idea, plain and simple, and Americans would do well to hope that it falls by the wayside, no matter who wins in November.
