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Republican senators praise Trump's plan to scrap taxes on tips

Republican senators on Capitol Hill met with top GOP candidates on Thursday and then brought up former President Trump’s proposal to repeal the tip tax, aimed at garnering support from voters who work in the service industry.

“One of the other senators told him that this is really about a large segment of the workforce, whether it’s a server, a valet, a coffee barista, wherever you are,” Sen. Shelley Moore Capito, R-Va., said Thursday.

“[Trump] “I think they were hearing complaints about the administration and the way the tip tax was being overhauled, and they were responding to that,” she said.

The White House did not immediately respond to a request for comment on whether the administration was considering changing its tipping policy.

The President’s fiscal year 2025 budget proposal highlights that his administration has recovered more than $770 million for workers who were victims of wage theft, including those who were not paid minimum wage or hard-earned overtime. [or] The tip was refused.”

Trump first floated the idea of ​​eliminating the tip tax at a rally on Sunday in Las Vegas, a gambling and tourism hotspot with many service-sector workers.

“If I’m president, I’m not going to tax tips or people who pay tips,” Trump said.

Republican lawmakers seemed pleased with the idea after meeting Thursday.

“This tip was genius,” said Sen. Kevin Cramer, R-Fla.[Trump] “I’d like to say it’s based on a lot of research, but it’s based on conversations I had with waitresses who said, ‘They’re after my tip.’

“They just feel an attack on their chips,” he said.

About 15.8 million people worked in the leisure and hospitality sector in 2022, but these sectors typically have some of the lowest-paid jobs in the economy.

Tipping as a commercial practice has become more widespread in recent years as electronic payment methods have become more widely adopted, many of which offer a tipping option by default.

A Pew Research Center poll last year found that 72% of Americans said tipping is becoming more common.

“Nearly seven in seven U.S. adults (72%) say tipping is expected more often today than it was five years ago, consistent with anecdotal reports and also known as ‘tipflation.'” According to CBS News.

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