Trump proposes ending taxes on tips
by Miranda Nazzaro - 06/10/24 7:56 AM ET
Former President Trump on Sunday said he would end taxes on tips as the “first thing” he does in office if reelected, marking his latest push to appeal to voters in the service industry.
“For those hotel workers and people that get tips, you’re going to be very happy. Because when I get to office, we are going to not charge taxes on tips,” Trump said at a rally in Las Vegas.
“We’re not going to do and 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 added. “And you do a great job of service, you take care of people and I think it’s going to be something that really is deserved.”
Changes to taxation on tipped income would require congressional approval. Lawmakers will be looking at the nation’s tax policy next year upon the expiration of Trump’s 2017 Tax Cuts and Jobs Cut Act (TCJA), which cut the corporate tax rate and brought down individual tax rates depending on the tax credit.
As the law currently stands, service workers are required to report their tips to the IRS, which views tips as regular taxable income.
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https://thehill.com/homenews/campaign/4713392-donald-trump-taxes-on-tips/