Trump vows to end taxes on tips if reelected
- Trump: 'When I get to office, we are going to not charge taxes on tips'
- Economists warn Trump's plan might further exacerbate inflation
- Biden admin aims to raise minimum wage, phase out tipped minimum wage
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(NewsNation) — Former President Donald Trump has vowed to eliminate taxation of income from tips if he wins a second term in the White House.
“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 Sunday at a rally in Nevada.
This plan has met resistance from Las Vegas labor leaders who called it a “wild campaign promise” and argue it’s not a “real solution.”
Vegas union leaders: Trump’s pledge unfairly structured
The Culinary Workers Union criticized Trump’s tax plan following his Las Vegas rally, calling it unfairly structured and financially irresponsible.
They argue that higher-income households and corporations should pay a greater share.
Additionally, they claim tax policies under Trump didn’t result in higher wages for workers.
How does Trump’s plan compare to Democrats’?
The Biden administration aims to raise the federal minimum wage and phase out the tipped minimum wage for restaurant workers.
Democrats are also advocating for higher corporate taxes and increased taxes on wealthy people with a net worth exceeding $100 million.
Regardless of who wins the White House in November, lawmakers will need to reassess tax policies next year when Trump’s 2017 tax cuts are set to expire.
While those policies reduced taxes across the board, they didn’t include provisions regarding tipped labor.
What are economists saying about this?
Economists suggest that reducing federal spending could help economic pressures, but they warn that Trump’s policies might further exacerbate inflation.
Additionally, they warn his plan to impose tariffs on imports and his immigration plan, which he’s dubbed the “largest deportation plan in American history,” could raise prices and overshadow any tax cuts.
Trump’s campaign hasn’t released a detailed economic plan but believes Biden’s climate change plan and renewable energy policies have hindered economic growth. The former president has promise to revive deregulation if he is reelected.
