Why ‘no tax on tips’ may have limited benefits for California workers

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No tax on tips, a campaign promise by President Donald Trump, is now part of the U.S. tax code – but experts across the political spectrum see limited benefits for California workers.

The Treasury Department and the IRS late last month released details of their proposed regulations around the new tax deduction, which Republicans included in their spending bill.

Under the provision, taxpayers who make less than $150,000 a year, or $300,000 if filing jointly, could deduct up to $25,000 in tips from their federal income taxes, regardless of whether they itemize their deductions. Among the nearly 70 occupations that qualify are restaurant servers, gig workers, barbers, cosmetologists and golf caddies. The dedu