But Democratic politicians and labor groups that are otherwise supportive of eliminating taxes on tips opposed the new law. Ted Pappageorge, the secretary-treasurer of the Culinary Union in Las Vegas, expressed frustration that the tax deduction is not permanent—it is set to sunset in 2028—while other tax provisions that benefit higher-income Americans were made permanent.
“Massive corporations and the super wealthy came out the big winners, and workers are getting scraps,” Pappageorge argued.
He also noted that the law pushes the burden onto the Treasury Department to determine the specifics of implementation of the provision, which is applicable for the current fiscal year and set to go into effect during the next tax filing season.