Photo by Dan Smedley on Unsplash
Donald Trump is going on the offensive for the Presidential election.
Now, he’s left Democrats on their heels after throwing a wildcard on the table.
And Donald Trump’s campaign made one power move that’s bad news for Joe Biden.
Donald Trump’s no tax on tips proposal shakes up the race
Former President Donald Trump isn’t a conventional Republican politician who follows a tightly controlled script on the campaign trail.
He unveiled a policy proposal at a June 9 campaign rally in Las Vegas, Nevada that surprised everyone.
Trump vowed that he would end taxing tips for service workers.
“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 at the rally. “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.”
Nevada is one of the swing states that will decide the Presidency this year, and about 25% of workers in Las Vegas are employed in the hospitality industry.
The proposal caught Democrats and the Republican establishment off guard.
Not taxing tips is a way to put more money in the pockets of hardworking Americans who are struggling with inflation under President Joe Biden.
And the cost to the federal budget is negligible at an estimated $250 billion over ten years.
Biden has given away more than $100 billion to Ukraine for its war effort since 2022.
U.S. Senator Ted Cruz (R-TX) introduced a bill to not tax tips into the Senate.
And in the House, the bill was sponsored by U.S. Representatives. Thomas Massie (R-KY), Matt Gaetz (R-FL), and Marjorie Taylor Greene (R-GA).
The proposal could be included in an extension of Trump’s landmark 2017 cuts that are due to expire next year.
Not taxing tips spreads throughout the country
The idea spread like wildfire among Trump supporters, who began posting pictures on social media of them writing “Vote for Trump, no tax on tips” on restaurant receipts.
Kid Rock left a $400 tip on a tip on a $1,143 tab at Nashville steakhouse.
“A vote for Trump is a vote for no tax on tips!!” Kid Rock wrote on the receipt.
— KidRock (@KidRock) June 15, 2024
Trump encouraged his supporters to begin leaving the message on receipts at the Turning Point Action conference in Michigan.
And the former President got in on the craze during a stop at a cheesesteak restaurant in Philadelphia.
He left a $500 tip with the message “no tax on tips” on the receipt.
BREAKING: While getting a Philly cheesesteak in Philly, Donald Trump writes “NO TAX ON TIPS!”pic.twitter.com/z0UY4jDiJp
— Ryan Fournier (@RyanAFournier) June 22, 2024
Now, the main super PAC backing his campaign, Make America Great Again Inc., is giving out stickers with the message “Trump won’t tax your tips! Vote Trump.”
The no tax on tips message has become a guerilla marketing tactic for the Trump campaign.
I just went to @MAGAIncWarRoom‘s https://t.co/0OndGuS3ah and signed up to get some stickers in the mail!!!
— Kaelan Dorr (@KDORR_USA) June 25, 2024
“It’s simple: President Trump wants hardworking Americans to keep more money in their pocket, Joe Biden wants to take it to give to illegal immigrants. President Trump’s plan is brilliant, and our sticker campaign will make sure it’s known far and wide,” Make America Great Again Inc. CEO Taylor Budowich said.
Economist Peter Schiff noted that taxes are a gift, not wages, as customers don’t deduct gifts from their taxes like employers do for wages, so they shouldn’t be taxable.
Tips are not income and should not be taxed. A tip is a gift to show appreciation. Customers are not required to tip and workers are required to provide service even to those who chose not to tip. Also, customers don’t deduct tips from their taxes the way employers deduct wages.
— Peter Schiff (@PeterSchiff) June 28, 2024
Donald Trump’s no tax on tips message is an innovation that’s shaking up the political world in the 2024 election cycle.
Election Buzz will keep you up-to-date on any developments to this ongoing story.
