Donald J. Trump’s Proposal: ‘No Taxes on Tips!’

Donald J. Trump’s Proposal: “No Taxes on Tips!”

In a surprising turn of events, Donald J. Trump introduced a new campaign pledge after a revealing conversation with a waitress at his Las Vegas hotel. The waitress shared her frustration about paying taxes on tips, prompting Mr. Trump to declare his support for “No taxes on tips!” during a recent rally in Virginia.

The concept, initially a rally talking point, has gained significant traction. The Republican Party has officially incorporated it into their platform, with House Speaker Mike Johnson from Louisiana expressing eagerness to implement the proposal swiftly. Even some Democrats are showing interest in the idea, particularly senators from Nevada, a state heavily reliant on the restaurant and casino industries.

This unexpected surge in support for exempting tips from taxes underscores the impromptu nature of economic policymaking under the Trump administration. Notably, economists advising the Trump campaign were caught off guard by the proposal, indicating its emergence as a key strategy to resonate with working-class Americans amidst the ongoing campaign against President Biden.

Encouraging his followers to spread the word, Mr. Trump has suggested leaving notes on restaurant bills informing service staff that a Trump victory in November would mean no taxes on tips. According to the Budget Lab at Yale, approximately four million Americans are employed in roles where tips play a significant role.

Stephen Moore, a Trump economic adviser, remarked on the unconventional genesis of the idea, stating, “It’s not like a gang of economists sitting around a table came up with that. I thought, ‘I don’t know if he’s being serious or not,’ but as a political matter, it’s a home run.”