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Former President Donald Trump pledged to remove tip taxes from his administration should he be elected in November.
Trump assured the audience during a rally on Sunday in Las Vegas, Nevada, that his government would not impose taxes on gratuities from employees of hotels, restaurants, or other businesses.
“So, 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,” Trump announced. “Because when I get to the office, we are going to not charge taxes on tips—people making tips.”
Tips are described as “discretionary (optional or extra) payments determined by a customer that employees receive from customers,” according to the Internal Revenue Service’s (IRS) website.
Workers may be paid in cash, via credit or debit card, or in the form of “tip amounts received from other employees paid out through tip pools” or “tip splitting.”
The IRS notes that “all cash and non-cash tips” an employee receives are “income and are subject to Federal income taxes”:
All cash and non-cash tips received by an employee are income and subject to federal income taxes. All cash tips received by an employee in any calendar month are subject to social security and Medicare taxes and must be reported to the employer. If the total tips received by the employee during a single calendar month by a single employer are less than $20, then these tips are not required to be reported, and taxes are not required to be withheld. Cash tips include tips received from customers, charged tips (for example, credit and debit card charges) distributed to the employee by the employee’s employers, and tips received from other employees under any tip-sharing arrangement. Tips also include tips received by both directly and indirectly tipped employees.
At the rally, Trump declared: “We’re not going to do it. And, we’re going to do that right away, first thing in the office. Because 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.”
Regarding the taxes of those who “have jobs in restaurants” where they collect tips, Trump stated that his government would not be “going after” them.
WATCH:
🚨New: President Trump has announced he will ask Congress to eliminate all taxes on TIPS for restaurant workers and hospitality workers.
Trump said, “When I get into office, we’re not going to charge taxes on tips-people making tips.”
pic.twitter.com/GNMw1U1Mio— The Calvin Coolidge Project (@TheCalvinCooli1) June 9, 2024
The White House recently got some devastating news as Trump’s conviction has not worked the way Democrats anticipated.
The Center Square reported that a new poll showed that the former president’s popularity has not dwindled post-verdict.
A new Emerson College Polling national survey found that a whopping 44 percent of those polled said that the 34 felony convictions did not impact their support for the former president; 33 percent said it made them less likely to support him, and another 27 percent said it made them more likely to vote for him.
“Trump’s support in our polling remained the same before and after his conviction,” Executive Director of Emerson College Polling Spencer Kimball said. “A majority of Democrats say it makes them less likely to support Trump (51%) and a majority of Republicans (55%) say it makes them more likely to support Trump. A plurality of independents say it makes no impact (41%), while 38% are less likely to vote for Trump and 21% more likely.”
“The poll found Trump had a narrow lead over President Joe Biden, with 46% of voters behind Trump and 45% backing Biden in the 2024 presidential election. Nine percent were undecided,” the report said.
A jury convicted Trump of violations of law in an attempt to hide payment to adult film star Stormy Daniels ahead of the 2016 campaign.
However, several legal experts on the right and left repeatedly said that they could not find any evidence that Trump did anything wrong, accusing Manhattan District Attorney Alvin Bragg of manufacturing the charges to ‘get’ the former president.
