McDonald’s CEO criticizes tipped wages in the restaurant industry, supports President Trump’s plan to eliminate federal taxes on tips. McDonald’s workers don’t earn tips, so the policy doesn’t benefit them. Sit-down restaurants in many states can pay servers as little as $2.13 per hour, set since 1991.

Seven states require restaurants to pay servers a minimum wage before tips. McDonald’s CEO advocates for this policy nationwide to lower poverty levels and employee turnover. McDonald’s introduces Extra Value Meals to attract lower- and middle-income customers amidst rising fast food prices.

As fast food prices rise, McDonald’s and others compete with sit-down chains offering similar deals. McDonald’s CEO suggests sit-down restaurants can offer lower prices because they pay servers a sub-minimum wage. McDonald’s leaves the National Restaurant Association due to policy differences on tipped wages.

McDonald’s shares dip slightly after the news.

Read more at Yahoo Finance: McDonald’s criticizes US restaurant industry for uneven wage policies