Trump Proposes To End Taxes On Tips

Daily Report June 12,2024

Former president Donald Trump has promised to eliminate taxes on tips if he wins the presidential election in November. The former president made this announcement at a Las Vegas rally on Sunday in the presence of thousands of supporters.

The Internal Revenue Service (IRS) defines tips as extra payments that customers choose to give employees. They can be given in cash, by credit or debit cards, or shared among employees through splitting.

The IRS considers tips as income subject to federal income, social security and Medicare taxes. According to the IRS, 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.

The former president has promised to put an end to tax for tips, citing it as a move that has long been a source of contention for service industry workers.

“Hotel workers and people that get tips, you’re going to be very happy because when I get to the office, we are going to not charge taxes on tips,” Trump said. “We’re not going to do it,” Trump added. “And, we’re going to do that right away, first thing in 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.”

The crowd erupted in cheers when Trump made the announcement. The former president added that his administration would not be going after the taxes of the people who have jobs in restaurants where they receive tips.

“And I think it’s going to be something that is deserved, more importantly, popular or unpopular. I do some unpopular things, too, if it’s right for the country. I do what’s right,” Trump said. “But so those people that have jobs in restaurants or whatever the job may be, a tipping job, we’re not going after it for taxes anymore; that will be ended.”

The former president’s rally in Las Vegas is part of his efforts to secure victory in Nevada, a key battleground state.

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