Morning Jolt: Trump’s Tax-Free-Tip Proposal Hits Capitol Hill

TODAY'S JOLT IS SPONSORED BY

WITH AUDREY FAHLBERG

June 20 2024

Trump's Tax-Free-Tip Proposal Hits Capitol Hill

National Review‘s political reporter Audrey Fahlberg here, filling in again for Jim Geraghty while he's on the NR Institute cruise.

On the menu today: Presumptive presidential nominee Donald Trump has a new favorite campaign talking point — exempting tips from taxes. I spoke with some senators about the fledgling proposal earlier this week.

Democrats Don't Outright Dismiss the Idea

Trump first tested this idea during a campaign event earlier this month in Nevada, a battleground state with an enormous hospitality, tourism, and service industry. "For those 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," he told rally-goers in Las Vegas after apparently getting the idea from a waitress there.

Under current law, tips are subject to payroll and income taxes, and changing the tax code would require congressional buy-in. Critics on and off Capitol Hill are panning the move as an election-year play to shore up support from young voters and service-workers in this ultra-competitive state Trump lost in ...

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