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New Poll Reveals Tipped Employees Support Policy Changes for Greater Financial Stability

A new survey commissioned by DailyPay and the Bipartisan Policy Center conducted by The Harris Poll among over 1,000 tipped employees (defined as those who work in the service industry and earn tips for their job) reveals that a significant majority of tipped employees (85%) are aware of discussions about eliminating federal taxes on tips. Importantly, the findings show broader interest in financial stability and policy proposals among the approximately 4 million U.S. workers who rely on tipped wages.

According to the survey, 86% of tipped employees support the campaign proposal to remove federal taxes on tips. Nearly eight in ten (79%) tipped employees express confidence that the new administration will follow through on this campaign proposal, though it would require Congressional action to become law and would not impact the millions of hourly workers who earn most of their income through regular wages. 

An overwhelming 96% of tipped employees believe their financial situation would change if tip income were tax-exempt. Though in reality, this would depend on how the exemption is structured and there are many other policies that could support workers—whether their income is primarily through tips or regular wages. Many tipped employees say if the proposal to eliminate federal tax on tips was passed they would be able to save toward a specific goal (48%), pay down debt (42%), and have enough money to cover their bills (42%). 

“These findings underscore workers’ concerns about financial stability and the role that bipartisan policy can play in improving economic security,” said Lettie Nocera, Director of the American Savings Education Council at the Bipartisan Policy Center. “Expanding access to an array of financial supports—such as the child tax credit, earned wage access, private retirement accounts, and emergency savings solutions—could benefit all workers and their employers.”

As discussions around tax policy and worker benefits continue, the Bipartisan Policy Center and DailyPay remain committed to providing research-driven insights. 

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