Former President Trump said Sunday that if re-elected, he would repeal the tip tax as “the first thing” he would do when he takes office, marking his latest effort to appeal to service industry voters.
“Hotel workers and people who get tips are going to be very happy because when I’m in office, there’s no tax on tips,” Trump said. He said at the rally In Las Vegas.
“We’re not going to do that. We’re going to do that as soon as we take office, first thing, because it’s been a contentious issue for years and years,” he added, “and you do a great service and you take care of people, and I think that would be a really well-deserved reward.”
Any changes to taxing tip income would require approval from Congress, as lawmakers consider the nation’s tax code next year after President Trump’s Tax Cuts and Jobs Act of 2017, which lowered corporate tax rates and reduced individual tax rates in line with tax credits, expires.
Under current law, service workers are required to report tips to the IRS. Get tips as ordinary taxable income.
Trump’s 2017 tax cuts did not include any provisions regarding gratuity, but if Republicans retake the White House and Senate and hold on to the House of Representatives, they will have an opportunity to add to or extend Trump’s previous policies.
Trump, Later Post On his Truth Social Twitter account, he attacked President Biden and attempted to contrast his own with the incumbent president’s tax policies.
“Evil Joe Biden has taken the exact opposite approach and is trying to impose a growing tax on tips and is hiring 88,000 IRS agents to collect them!” Trump wrote.
“Hopefully, union members, union leaders and workers across the country, union and non-union, will support Donald J. Trump because I am a man of words and actions! Trump keeps his promises and stands with our great workers. Promises kept!” he added.
Biden has called for a series of tax hikes on the wealthy and large corporations, unveiling a proposal in March to impose a wealth tax on individuals with assets of more than $100 million. He also proposed keeping corporate tax rates closer to pre-Trump levels.
Biden also said: Raising the federal minimum wage and Phasing out the tipped minimum wage For restaurant service employees.
In 2021, the Department of Labor under the Biden administration reversed the Trump-era policy. Published the final rule Limits when employers can pay workers the tipped minimum wage for non-tipped work. From Reuters.
The Hill has reached out to the Trump campaign for further comment.
The Las Vegas-based Culinary Workers Union Local 226 criticized Trump’s pledge on Sunday.
“Relief for tip workers is certainly needed, but Nevada workers are smart enough to know the difference between real solutions and the wild campaign promises of a convicted felon,” said Ted Papageorge, executive treasurer of the Culinary Union. wrote in the statement.
—Updated 12:33 p.m.
