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Trump's Latest Tax Proposal Could Earn Him Big Points With Blue-Collar Workers: Eliminating Taxes on Servers' Tips
Townhall ^ | 06/14/2024 | Sarah Arnold

Posted on 06/14/2024 8:44:23 PM PDT by SeekAndFind

Former President Donald Trump is putting American workers first— unlike the incumbent leader in the White House now.

Trump discussed the proposal of eliminating taxes on servers' tips in his pitch for a new policy position that could inch him closer to victory in November.

The former president introduced the idea during a rally in Nevada over the weekend where many Americans work at hotels, restaurants, and in the entertainment business and rely on tips to make ends meet.

“This is the first time I've said this and 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, people making tips,” Trump said. “It’s been a point of contention for years and years and years, 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.”

His proposal was met with praise from Republicans and even a few Democrats who were reluctant to oppose the idea.

Sen. Ron Johnson (R-Wis.) said the former president has a “dark good idea,” saying that Trump sold Republicans when he floated his no-tax proposals.

“One of the reasons he's doing this [is] because the Biden administration is taking on onerous reporting regulations. They want to make sure they get every tax, every little penny of tip. And this [is] just a total break from that,” Johnson said.

House Appropriations Chairman Tom Cole (R-OK) also praised the idea, saying said that “It’s true, gifts aren’t a taxable item, so there’s considerable merit to that in my view.”

Committee member Brad Wenstrup also touted Trump’s idea after saying that he waited tables for nine years, believing the topic deserves a conservation.

Democrat Ways and Means member Dan Kildee (D-Mich) also said that he was open to the idea of eliminating taxes for service workers. However, he still downplayed Trump’s economic policies as an election ploy.

“If what we’re talking about is giving more tax relief to working people, the method we use to get there, I’m open to conversation on that,” Killed said. “When it comes to tax policy, we do not have a tax code that requires the wealthiest and well-connected to pay their fair share. That’s got to be our first priority.”

Trump said he got the idea after talking to a waitress who said she struggles to make ends meet every month.


TOPICS: Business/Economy; Front Page News; Government; News/Current Events; Politics/Elections; US: Michigan; US: Ohio; US: Oklahoma; US: Wisconsin
KEYWORDS: bluecollars; bradwenstrup; dankildee; incometax; michigan; ohio; oklahoma; reagan1984; ronjohnson; salestax; saraharnold; tariffs; taxes; tips; tomcole; trump; trump2024; wisconsin
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1 posted on 06/14/2024 8:44:23 PM PDT by SeekAndFind
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To: SeekAndFind

Reagan took some hits for increasing reporting on tips in his first term. I like the idea of helping waiters/waitresses/bussers and also reducing reporting hassles for employers.


2 posted on 06/14/2024 8:54:07 PM PDT by Dr. Sivana (Stormy Daniels is a McGuffin)
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To: SeekAndFind

Eliminating the income tax for everyone is a better platform. I have experience waiting tables and did so for a number of years. It can be hard, often thankless work. Nevertheless, I’m not sure servers should specifically be singled out, among all other occupations, for income tax exemption.


3 posted on 06/14/2024 8:56:28 PM PDT by mbrfl
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To: SeekAndFind

The worker in the clothing store pays taxes and when she can afford it goes out to eat on a Friday night and is expected to tip the waitress who lives tax free?


4 posted on 06/14/2024 8:58:03 PM PDT by ansel12 ((NATO warrior under Reagan, and RA under Nixon, bemoaning the pro-Russians from Vietnam to Ukraine.))
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To: ansel12

He’s no dummy is he? He’s got the rats on the run. What about no taxes on SSI income? That’s for the gummers and cottonseeds.


5 posted on 06/14/2024 9:04:14 PM PDT by DIRTYSECRET
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To: DIRTYSECRET

I like the idea of eliminating income tax and replacing it with tariffs on foreign goods. Maybe make all solely US made products tax free.


6 posted on 06/14/2024 9:06:33 PM PDT by Reno89519 (Build the Wall, Deport Them All. No amnesty for anyone.)
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To: SeekAndFind

For many years I’ve been advocating for no tax on tips and also no tax on overtime. When somebody goes above and beyond its not congress and their greedy lobbiests that should be rewarded.


7 posted on 06/14/2024 9:08:02 PM PDT by AndyTheBear (Certified smarter than average for my species)
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To: mbrfl

It’s also worth pointing out that servers generally under-report their tip income - particularly cash tips. When people charge their tips it automatically gets reported. Cash tips are reported at the discretion of a server. As a server I would have preferred to see establishments getting away from tips and moving to a gratuity based system, as they have in Canada and Europe. Being stiffed by a cheap customer who received excellent service is one of the most demoralizing things for a server.

BTW, I recently visited my brother in Miami, and see that a lot of restaurants there are switching to a gratuity based system where a certain percentage (usually about 18%) is automatically added on to pay the server. Additional tips above that can still be made, but the server is at least guaranteed to not be stiffed. This probably has to do with the large number of foreign tourists who are used to paying that way. A gratuity based system also helps mitigating the sort of bargaining that sometimes goes on between servers and customers, whereby a customer may sometimes try to pressure servers into getting something extra (an extra dessert or something like that) with the implication that if they don’t cooperate, they won’t get a good tip.


8 posted on 06/14/2024 9:08:32 PM PDT by mbrfl
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To: DIRTYSECRET

Oh, you mean that little ditty that Jao Bi Din came up with to tax peoples social security benefits because they had to continue to work to be able to live somewhat like a human.


9 posted on 06/14/2024 9:08:35 PM PDT by DaiHuy (I support LGBTQ. (Lets Get Biden to Quit.))
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To: DaiHuy

I do believe it was BJ that taxed SSI in ‘93. You would think the gummers in Fla. would have thrown their senator, Nelson out on his ear in ‘94. Didn’t happen.


10 posted on 06/14/2024 9:15:58 PM PDT by DIRTYSECRET
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To: DIRTYSECRET

Cottonseeds and gummers, the only age groups that vote majority for Trump, whatever a cottonseed is?

Weird post.


11 posted on 06/14/2024 9:16:24 PM PDT by ansel12 ((NATO warrior under Reagan, and RA under Nixon, bemoaning the pro-Russians from Vietnam to Ukraine.))
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To: ansel12

sorry-cottonheads.


12 posted on 06/14/2024 9:18:02 PM PDT by DIRTYSECRET
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To: mbrfl

Everyone else in the restaurant pays taxes, only the waiter doesn’t.


13 posted on 06/14/2024 9:18:45 PM PDT by ansel12 ((NATO warrior under Reagan, and RA under Nixon, bemoaning the pro-Russians from Vietnam to Ukraine.))
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To: DIRTYSECRET

That means they have what grey hair, or white hair?

You seem to have a thing against Trump’s base.


14 posted on 06/14/2024 9:19:51 PM PDT by ansel12 ((NATO warrior under Reagan, and RA under Nixon, bemoaning the pro-Russians from Vietnam to Ukraine.))
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To: SeekAndFind

I don’t think I like this idea because it would probably lead to far less tipping.

I think most of their income is from tipping and not from their salary.

Correctly or not, I think most waiters and waitresses only report part of their income from tips.

I’m open to correction since I’ve never worked as a waiter.


15 posted on 06/14/2024 9:21:10 PM PDT by libertylover (Our biggest problem, by far, is that almost all of big media is AGENDA-DRIVEN, not-truth driven.)
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To: mbrfl

Because they’re often paid less than minimum wage because their tips cover the shortfall. Except they lose money when they take vacation days or call out sick. Why should they be treated less than other workers who have paid vacations and sick days they can actually afford to take?


16 posted on 06/14/2024 9:33:28 PM PDT by Prince of Space (Trump 2024!)
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To: ansel12

Not true. They pay taxes like everyone else on their reported income.


17 posted on 06/14/2024 9:36:08 PM PDT by Prince of Space (Trump 2024!)
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To: ansel12

“ Everyone else in the restaurant pays taxes, only the waiter doesn’t.”

The wait staff pays taxes on their hourly wages just like everyone else.

But you knew that.

L


18 posted on 06/14/2024 9:37:34 PM PDT by Lurker ( Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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To: Lurker; Prince of Space

Wages of wait staff can be literally almost nothing and tips their real income and the reason for the job.


19 posted on 06/14/2024 9:42:25 PM PDT by ansel12 ((NATO warrior under Reagan, and RA under Nixon, bemoaning the pro-Russians from Vietnam to Ukraine.))
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To: ansel12

“ Wages of wait staff can be literally almost nothing and tips their real income and the reason for the job.”

And?

L


20 posted on 06/14/2024 9:48:01 PM PDT by Lurker ( Peaceful coexistence with the Left is not possible. Stop pretending that it is.)
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