President Trump’s One Big Beautiful Bill Act may have quietly changed the economics of the creator economy.
The U.S. Treasury Department this past week released a list of occupations “that customarily and regularly received tips” and thus will be eligible for the administration’s flagship “no tax on tips” policy, which will let eligible taxpayers deduct their tipped income, within certain limits.
And while the list includes the obvious (bartenders, food servers, casino dealers and housekeepers are all there) it also includes some surprising jobs that could alter the economics of the creator economy.
That’s because the Treasury Department has determined that “digital content creators” are eligible, including podcasters, social media influencers and streamers.
Comedians, singers, musicians, DJs and magicians are also included, though that is more relevant to the wedding performer crowd than Grammy-winners.
The change could cause digital creators to rethink how they seek income. Platforms like TikTok, YouTube, Twitch and Snapchat all offer a variety of ways for creators to generate income, be it a share of advertising revenue or creator funding programs, or options to launch subscription tiers for their channels or profiles. But they also give creators the option to turn on tips or gifts. If revenue from user tips or gifts is eligible, while recurring subscription revenue is not, it could shift how streamers, podcasters or influencers ask their followers to support them.
To be sure, there are limitations: The tax deduction is capped at $25,000 per year, and it begins to phase out at $150,000 in income for single filers and $300,000 for married joint filers. The act also provides that tips do not qualify for the deduction if they are received “in the course of certain specified trades or businesses — including the fields of health, performing arts, and athletics,” Treasury says, further limiting the deduction opportunity for some in entertainment-adjacent lines of work.
But by making influencers, Twitch streamers and podcasters eligible, the administration has nonetheless changed the incentive structure for digital creators, and the ramifications could be felt across the creator economy in the name of tax efficiency (Don’t be surprised if users are asked to like, subscribe, and tip).
Platforms may also develop more ways to more prominently feature tips and gifts, pushing creators to add more opportunities for that income.
But the inclusion of digital creators is also a recognition of how the power dynamics have shifted in media.
Podcasters and creators, as everyone knows by now, have emerged as a driving force in today’s political climate, and the classification by Treasury could push more people to consider joining the fray or ramping up their content, as long as it is tipped, of course.