(TargetLiberty.org) – On Sunday, former President Donald Trump announced during his rally in Las Vegas that if he wins back the Oval Office the first thing he will do is put an end to taxes on tips. This is an attempt to win the favor of service industry voters.
As he stated this decision was going to be making all those people who receive tips extremely happy, as they would no longer need to pay taxes on those. He continued by stating that this is something he would do straight away the first moment he is in office, as it has been a point of contention for years. He added that they were doing a “great job” of taking care of other people and this change is something they deserve.
In order to pass such a change Trump would require approval from Congress. Currently, lawmakers are set to consider tax policy next year, following the expiration of the 2017 Tax Cuts and Jobs Cut Act, which had reduced both corporate and individual tax rates depending on tax credit. Up till now service workers are mandated to report their tips to the IRS, and are taxed on them as if it is regular taxable income.
The Trump tax cuts from 2017 didn’t have any provisions regarding tips, but if the GOP manages to retain the House while also winning back the Senate and White House, they could potentially alter the previous Trump administration policies, while also extending them.
In a post on Truth Social Trump had slammed President Biden for taking a completely opposite approach to taxes, arguing that Biden wanted to tax people more and was even looking to hire 88K IRS Agents.
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