An Illustrated Guide to Who Really Benefits From ‘No Tax on Tips’

There’s no question that President Trump’s proposal to stop taxing tips has broad appeal. It’s popular in polling, lawmakers in both parties support it, and now a version of the idea is on its way to becoming law.

But the effect of the policy would actually be quite narrow. About 3 percent of American workers receive tips, but about a third of those employees would not see a gain from the change.

That’s because of the way Republicans structured the policy in the tax legislation they passed through the House recently. Here’s who would benefit under their plan — and who wouldn’t.

The proposal would leave out workers who are not tipped.

The tax break is good news for people in industries like dining, where tips are a big part of worker pay. But it also means that two…