Staff Reports
Former President Donald Trump visited Capitol Hill on Thursday to discuss various policy ideas with GOP lawmakers. One of the main focuses of his visit was his new plan to exempt income earned from tips from federal taxes. This means that people who earn money from tips at their jobs would not have to pay taxes on that income to the government.
Florida Rep. Matt Gaetz said that President Trump talked the most about his desire for a bill to eliminate taxes on tips during his meeting with House Republicans. Trump also shared the story of how he got the idea for this plan with Senate Republicans. According to Sen. Cynthia Lummis, he was inspired by a waitress who told him about the challenges of reporting tips and the burdensome penalties that workers face. Trump was surprised by this and questioned why tips should even be taxed.
“It was an indication that he just really listens to working Americans and respects their opinions,” Ms. Lummis said. https://t.co/GObpiYlROY
— The Washington Times (@WashTimes) June 14, 2024
The IRS currently requires employees to report their tips monthly to their employers if the total amount exceeds $20. Trump first announced his plan to exempt tips from federal taxes during a campaign event in Nevada. He emphasized the importance of recognizing the hard work of service industry professionals and noted the strong impact of hospitality workers in swing states like Nevada.
Republican lawmakers are now starting a broader discussion on tax policy as they work on crafting new legislation. They are looking at which tax breaks to extend and what policy changes they want to make to the tax code. While Trump is keen on prioritizing the tip income exemption, it’s still uncertain how enthusiastic GOP lawmakers will be about including it in the final package.
Sen. Roger Marshall mentioned that none of the Republicans at the meeting with Trump voiced objections to the idea, but also stated that the meeting did not allow for a back-and-forth discussion. He compared the meeting to a family dinner and noted that no one opposed the idea at the time.
As the discussions on tax policy continue, it remains to be seen how Trump’s plan to eliminate taxes on tips will be received by GOP lawmakers.
