NEW: McDonald’s CEO Chris Kempczinski whines on CNBC that Trump’s ‘No Tax On Tips’ policy isn’t fair to his company because they don’t allow their employees to get tips.
“The issue with no tax on tips is it only benefited those restaurants that have tips.”
Sounds like a personal problem.
McDonald’s CEO Chris Kempczinski expressed concern during an interview on CNBC regarding former President Donald Trump’s proposed “No Tax on Tips” policy. The fast-food executive criticized the initiative, claiming it would unfairly advantage restaurants that allow tipping, while putting non-tipping establishments like McDonald’s at a disadvantage.
“The issue with no tax on tips is it only benefits those restaurants that have tips,” Kempczinski said, signaling that businesses such as McDonald’s—which typically do not permit employees to accept tips—would see no benefit from the policy. He implied that such a move could widen the competitive gap between different segments of the food service industry.
The proposed tax break, recently championed by Trump at campaign rallies, is aimed at helping service industry workers by allowing them to keep more of their earnings. Many restaurant workers, particularly in full-service establishments, rely heavily on tips to supplement low hourly wages. The idea has gained support from both workers and some small business owners in the hospitality sector.
Critics of Kempczinski’s stance argue that his objection reflects broader issues within McDonald’s compensation model. While other restaurants might benefit from tax-free tips, McDonald’s employees are generally barred from receiving them and are paid flat hourly wages, prompting some to say the CEO’s complaint is more about maintaining control over labor costs than about fairness.
The debate highlights growing tensions over wage equity and worker support in the restaurant industry. As policymakers and presidential candidates propose new ways to support low-wage workers, companies like McDonald’s may face increased scrutiny over how they structure pay and employee benefits in a changing labor landscape.
