Trump's tax-free tips proposal would be 'massive' for restaurants, servers: Jon Taffer
'Bar Rescue' host and executive producer Jon Taffer breaks down the impact of inflation and tax-free tips on the restaurant and food service industries.
President Trump’s tax-free tip plan is a stroke of genius that cuts straight to the heart of the tax issue, making it clear that Republicans are the party of low taxes for everyone.
Trump’s proposal would make workers’ tips non-taxable.
"I will eliminate taxes on tips for restaurant workers and hospitality workers, and anyone else relying on tips, no more taxes on tips," Trump said.
A restaurant worker holds up a receipt with a note that reads "Vote Trump No Tax on Tip" from former President Trump at Tony and Nick's Steaks on June 22, 2024, in Philadelphia. (Anna Moneymaker/Getty Images)
President Trump’s pledge to eliminate federal taxes on tipped income is inspiring a frenzy of restaurant customers to post their checks online, complete with handwritten notes endorsing Trump’s policy.
Photos have been circulating all over social media showing servers receiving – in addition to a check with their gratuity – a handwritten message calling for their support of Trump due to his promise of tax-free tips.
It is a great incentive for millions of Americans to return to the workforce post-COVID. It organically connects work and reward in real time.
The idea has caught fire with serious Republican lawmakers. Sen. Steve Daines, R-Mont., chairman of the National Republican Senatorial Committee, and Sens. Ted Cruz, R-Texas, Rick Scott, R-Fla., and Kevin Cramer, R-N.D., have introduced the "No Tax on Tips Act."
TRUMP VS. BIDEN: WHERE THE PRESIDENTIAL CANDIDATES STAND ON TAXES
Many have observed the political gain Trump can expect from the millions of waiters and waitresses, taxi and rideshare drivers, beauticians and barbers, bartenders, caddies, delivery drivers and others.
But there is a larger audience: the tens of millions of Americans who remember their early years working for tips. They see the respect and appreciation for their work shown by this tax cut.
Also not unnoticed is the chilled response by Democrat politicians. They didn’t think of it and must oppose all things Trump.
Union bosses hate the Trump idea and actually oppose tips as they find it hard to unionize workers who have become accustomed to being rewarded for work rather than simply paid by the hour. Bartenders are not assembly line workers.
THE ONE PIECE OF TRUMP’S LEGACY THAT HAUNTS BIDEN
The Trump no-tip tax idea builds on his call to make permanent the historic 2017 Trump tax cuts, which expires at the end of 2025. Also known as the Tax Cuts and Jobs Act, the Trump tax cuts reduced the income tax burden across the board.
Trump said: "I will make the Trump tax cuts permanent. You know they expire in a year. And we will cut your taxes even more than that."
Trump’s tax cuts also greatly simplified the tax system by doubling the standard deduction, meaning tens of millions of households no longer have to track down receipts for everything just to file their taxes.
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Trump further emphasized the contrast with high-tax President Biden: "Instead of a Biden tax hike, I’ll give you a Trump middle class, upper class, lower class, business class, big tax cut."
Biden vows to saddle America with a long list of tax increases totaling $5 trillion. Biden has also vowed to "eliminate" the Trump tax cuts and said they "are going to stay expired and dead forever if I’m re-elected."
Biden and the Democrats try to pretend their tax increases will be paid by "someone else." They try to tell you they’re only taxing wealthy corporations. But in reality the corporate income tax is a direct hit on the middle class: The tax is paid by consumers in higher prices and workers in lower wages.
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The corporate tax also hits retirees as it damages the value of their nest egg: their pension, 401(k) or IRA.
Trump will cut everyone’s taxes, and his call to eliminate the tip tax allows workers who are showing up in person to keep more of their own money and reward their hard work.
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