Trump again calls for exempting tips from federal income tax
In a pitch to service workers during last year's election, President Donald Trump called for making tips exempt from income tax.
The president hasn't forgotten about his proposal, as Trump confirmed over the weekend that he is working to make it happen.
Trump: "Any worker who relies on tips [as] income, your tips will be 100% yours"
Fox News reported that the president brought up the issue while speaking to supporters at a rally held in Las Vegas on Saturday afternoon.
"Any worker who relies on tips [as] income, your tips will be 100% yours," Trump stated before speculating about what effect the idea had on his electoral performance.
"You think that had an impact on the election?" Trump asked. "What, a half a point? It's pretty big….nationwide over four million workers depend on tip income, including an estimated 700,000 single moms."
"And here in Nevada…think of it, a quarter of the typical restaurant workers' pay comes from tips," Trump pointed out before acknowledging that he wasn't aware of this fact.
Bill would allow 100% income tax deduction on tips up to $25,000
According to Fox Business, the law would allow those employed in the food, beverage, and beauty service industries to claim a 100% deduction for cash and non-cash tips worth up to $25,000.
However, that deduction would only be available for those individuals with an income totaling less than $150,000 per year.
"American workers in many industries rely on tipped wages to make ends meet," the Texas lawmaker was quoted as saying in a statement put out on January 16.
Cruz: "The GOP should be the party of bartenders, of waiters and waitresses"
"Today, I’m introducing my bipartisan No Tax on Tips Act — legislation I authored to fulfill President Trump’s promise to end the wrongful practice of taxing voluntary tips," Cruz explained.
Sen. Cruz introduces bill to make tips exempt from federal income taxes https://t.co/KFy9DpgYGV
— FOX Business (@FoxBusiness) June 22, 2024
"I've long believed the GOP should be the party of bartenders, of waiters and waitresses, and this bill is an important step to ensure we are addressing the economic needs of working Americans," he declared.
"This pro-worker bill will deliver relief to families facing rising costs caused by the Biden administration’s inflationary policies," the senator went on to add.
