(Matthew Doarnberger, Headline USA) Speaking to a crowd of supporters in Las Vegas on Sunday, former president Donald Trump declared that, if re-elected, he would end taxation on tips for those in the service industry, according to The Hill.
“For those hotel workers and people that get tips, you’re going to be very happy,” he said. “Because when I get to office, we are going to not charge taxes on tips.”
Trump went on to say that he would attempt to accomplish this as soon as he assumes office and went on to compliment those in the industry for their commitment to their professions.
“We’re going to do that right away, first thing in office, because it’s been a point of contention for years and years and years,” he said.
“And you do a great job of service,” he added. “You take care of people, and I think it’s going to be something that really is deserved.”
The elimination of taxes on tipped income would require congressional approval. As a result, Trump’s plan could hinge on whether or not Republicans can obtain the majority in the Senate and retain the majority in the House. Regardless of electoral outcome, Congress will likely assess tax policy when Trump’s 2017 Tax Cuts and Jobs Cut Act is set to expire next year.
Following the rally, the former president went on the internet site Truth Social in an attempt to contrast his vision on tax rates with that of President Joe Biden.
“Crooked Joe Biden has taken the totally opposite approach, trying to TAX more and more of their Tips, even hiring 88,000 IRS Agents to collect!”
As current tax law stands, employees receiving tips must report them to the IRS as income. The changes Trump is proposing could appeal to the large sector of employees in Nevada, where income is heavily reliant on tips. A Republican presidential candidate has not won the state since 2004.
The current polling average from RealClearPolitics has Trump leading in the state by 5.3 percentage points over Biden.
