New York, NY – She has gone from ‘tax the rich’ to ‘tax the tips’ in a matter of weeks. Months after former Vice President Kamala Harris championed President Donald Trump’s ‘no tax on tips’ policy, one Democrat is now saying it’s a bad idea.
Representative Alexandria Ocasio-Cortez (D-NY), the outspoken congresswoman from New York City’s 14th district, has publicly declared her opposition to the “No Tax on Tips” proposal, sparking debate across social and political circles. The announcement, made during an Instagram Live session on Tuesday evening, March 4, 2025, has drawn both criticism and curiosity for its unconventional reasoning.
Ocasio-Cortez, a former bartender known for her progressive stance on economic justice, argued that eliminating taxes on tips could lead to unintended consequences for workers across industries. “We could very easily enter a world where no one’s employer is actually paying their wages, and we’re all just tipping each other and essentially GoFundMe-ing the entire economy,” she said during the livestream. She warned that such a policy might create a “slippery slope” where all jobs—ranging from doctors and teachers to mechanics—could become reliant on tips rather than stable wages, undermining fair labor standards.
The “No Tax on Tips” idea, which has gained traction in some political corners as a way to boost take-home pay for service workers, would exempt gratuities from federal income tax. Proponents argue it supports low-wage earners in industries like hospitality, where Ocasio-Cortez herself worked before her political career. However, the congresswoman, who has long championed raising the minimum wage and strengthening worker protections, expressed skepticism about its broader implications. “Imagine tipping your doctor, your teacher, your mechanic—every job relying on tips instead of a fair wage,” she remarked, suggesting the policy could erode employer accountability.
Her comments quickly ignited a firestorm on social media. Posts on X reflected a mix of incredulity and mockery, with some users calling her stance “insane” and others questioning the logic of her hypothetical scenario. Critics pointed to her past as a service worker, accusing her of turning her back on bartenders and waitstaff who might benefit from the tax break. Supporters, meanwhile, praised her for highlighting potential long-term risks to labor structures, aligning with her broader advocacy for systemic economic reform.
Ocasio-Cortez’s position stands in contrast to some bipartisan support for the proposal, which has been floated as a populist measure to appeal to working-class voters. While she acknowledged the appeal of immediate tax relief, she urged a focus on comprehensive wage solutions instead. “We need to ensure employers pay a living wage, not shift the burden onto customers or workers,” she emphasized.