Trump proposes ending taxes on tips

Former President Trump said Sunday he would end tip taxes as the “first thing he does” if re-elected. This marks his latest attempt to appeal to service sector voters.

“For those hotel workers and people who get tips, you're going to be very happy with that. Because when I come into office, we don't tax tips,” Trump said said at a meeting in Las Vegas.

“We're not going to do it, and we're going to do it right away, first in office, because it's been a point of contention for years and years and years,” he added. “And you do a great job, you take care of people and I think it's something that's really earned.”

Changes to the tax on tipped income would require congressional approval. Lawmakers will look at the country's tax policy next year following the passage of Trump's 2017 Tax Cuts and Jobs Cut Act (TCJA), which lowered corporate taxes and lowered individual tax rates, depending on the tax credit.

As the law currently stands, service members are required to report their tips to the IRS. which tips to view as regular taxable income.

Trump's 2017 tax cuts did not include tipping provisions, but if Republicans retake the White House and Senate and retain the House, they would have the opportunity to complement and expand Trump's previous policies.

Trump, op a later message on Truth Social, went after President Biden in an effort to contrast himself with the incumbent president's tax policies.

“Crooked Joe Biden has taken the complete opposite approach, taxing more and more of their tips and even hiring 88,000 IRS agents to collect!” Trump wrote.

“Hopefully union members, union leadership itself, and workers across the country, both union and non-union, will support Donald J. Trump, because I'm all talk and all action! TRUMP KEEP HIS PROMISES AND STANDS WITH OUR GREAT EMPLOYEES. PROMISES MADE, PROMISES KEPT!” he added.

Biden has called for a series of tax hikes on wealthy individuals and large corporations, and released a proposal in March that would impose a wealth tax on individuals worth more than $100 million. He also proposed bringing corporate taxes closer to pre-Trump levels.

Biden has also pushed for that is increased to the federal minimum wage And abolition of the tipped minimum wage for restaurant staff.

In 2021, the Department of Labor under Biden reversed a Trump-era policy issued a final rule limit when employers can pay workers the lower minimum wage for performing duties without tips, according to Reuters.

The Hill reached out to Trump's campaign for further comment.

The Culinary Workers Union Local 226, based in Las Vegas, criticized Trump's pledge on Sunday.

“Relief is certainly needed for tip earners, but Nevada workers are smart enough to know the difference between real solutions and wild campaign promises from a convicted felon,” said Ted Pappageorge, secretary of the Culinary Union. wrote in a statement.

—Updated at 12:33 p.m

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