AOC officially does not refuse tax on tips for waitresses

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New York, NY – In a few weeks she switched from “Tax of the Reich” to “Taxing the Tips”. Months after former Vice President Kamala Harris campaigned for President Donald Trump's “No Constern on Tips” policy, a democrat says that it is a bad idea.

The representative Alexandria Ocasio-Cortez (D-NY), the pronounced congress from the 14th district of New York City, has publicly explained her opposition to the “No Taxes” proposal and triggered debates across social and political circles. The announcement that was made during an Instagram meeting on Tuesday evening, March 4, 2025, has drawn both criticism and curiosity about its unconventional arguments.

Ocasio-Cortez, a former bartender who is known for its progressive attitude towards economic justice, argued that the elimination of taxes on tips on unintentional consequences for employees in industries could lead. “We could easily enter a world in which no employer actually pays their wages, and we have all only divided each other and essentially the entire economy,” she said during the live stream. She warned that such a policy could create a “slippery slope” in which all jobs – from doctors and teachers to mechanics – could depend on tips rather than on stable wages and undermine fair work standards.

The idea “no tax on tips”, which in some political corners as an increase in the payment of Take-Home for servants would be exempted from the federal income tax. Proponents argue that it supports low-wage recipients in industries such as Hospitality, in which Ocasio-Cortez himself worked before her political career. However, the MEP, who has long campaigned for the minimum wage and strengthening the employee, expressed skepticism compared to their broader effects. “Imagine you turn your doctor, your teacher, your mechanic to tips instead of a fair wage,” she noted that the directive could undermine the employer's accountability.

Her comments quickly lit a firestorm on social media. Contributions to X reflected a mixture of disbelief and ridicule, with some users called their attitude as “crazy” and others questioned the logic of their hypothetical scenario. Critics referred to their past as a service worker and accused them, bartender and waiter, who could benefit from the tax benefits. Meanwhile, they praised supporters for highlighting potential long -term risks to work structures and aligning themselves with their broader attorney for systemic economic reforms.

The position of Ocasio-Cortez is in contrast to a cross-party support of the proposal, which as a populist measure to comply with the voters of the working class. While she recognized the appeal of immediate tax relief, she instead called for a focus on comprehensive wage solutions. “We have to ensure that employers pay a living and do not relocate the burden on customers or workers,” she emphasized.