Treasury Secretary Scott Bessent surprised patrons at the Metro 29 diner in Arlington, Virginia on Labor Day to highlight the importance of the president’s ‘No Tax on Tips’ policy to local employees.
Bessent arrived with staff for one of the diner’s famous three-egg omelets and spoke with employees about the president’s new plan, reminding them that in the following tax year, they would not be required to pay tax on their tips.
He acknowledged to the Daily Mail, that some consumers were starting to cut back on expenses like eating out at restaurants, but described it as a ‘long-cycle problem’ that was five years in the making.
‘There’s an affordability crisis, first you got to bend the inflation curve down and then you can start addressing it,’ he said, adding that it was among the administration’s top concerns.
Bessent said he first got a job at the age of nine at Hardwick’s Cafeteria, a local cafe in Ocean Drive Beach, South Carolina where he worked as a busboy and relied on tips for a significant portion of his income.
‘This is near and dear to my heart,’ he told the Daily Mail in an exclusive interview.
Bessent shared personal experiences with tip-based work, recalling how he set up beach chairs as a boy and received tips from beachgoers. Both sisters also worked tip-earning jobs in their beach town, and he bartended while at Yale University.
U.S. Secretary of the Treasury Scott Bessent watches as his food order is served during a Labor Day visit to Metro 29 Diner
U.S. Secretary of the Treasury Scott Bessent pays his bill during a Labor Day visit to McLean Family Restaurant
Regarding the policy’s impact, Bessent said tipping etiquette would remain unchanged, but patrons could take satisfaction knowing their servers would keep more of their earnings.
He also addressed the growing number of businesses pivoting their screens back to the consumer to request more tips for even basic services.
‘You can do what you want,’ he chuckled. ‘I always do, because the nine-year-old inside of me has a bias.’
Bessent spoke with server Deanna Swayne, who waited on him and had worked at the diner for 30 years.
Bessent tipped her $10, a 22 percent tip of the $44.68 bill and wrote ‘No Tax on Tips!’ on the receipt.
While restaurant owners sighed with relief after the price of eggs fell dramatically after Trump became president, other products such as bacon and beef have jumped in cost.
Issues like the cost of beef, Bessent said, could be addressed by working with ranchers to increase their herds and increase supply.
‘I don’t know if there’s some kind of subsidy that’s needed,’ he said.
U.S. Secretary of the Treasury Scott Bessent visits Metro 29 Diner in Arlington, Virginia, U.S.
Server Deanna Swayne hold up her receipt to show off her tip
He pointed to the president’s efforts to lower the cost of gasoline to a four year low, and the legislation passed to allow no tax on tips, no tax on overtime, social security earnings and earning deductibility for auto loans.
That would help offset some of the costs experienced by consumers, he said, but acknowledged there was an ‘affordability crisis’ that many in the country were facing.
‘What we’re not going to do is what the Biden administration did, which is is tell people they didn’t know what they were feeling and that it was a vibe session and, you’ve got it really good, shut up and move along,’ he said.
Diner co-owner Peter Bota said it was nice to have Bessent stop by as patrons enjoyed his visit on the Labor Day holiday.
He said he looked forward to the ‘No Tax on Tips’ benefit going into effect when his employees filled their taxes the following year.
‘It hasn’t had an immediate effect but it will next year when they file their taxes,’ Bota said.
Bota said his business continued to face higher labor costs, and other products rising and falling, but that he was grateful that business was back after the coronavirus pandemic.
‘We survived COVID so that was our biggest challenge,’ he said. ‘Prices go up and down, so that’s pretty normal. But if you can survive COVID, you can survive price increases,’ he said.
