Saturday, 12 October 2024

GOP Lawmakers Unveil Bill To Nix Federal Taxes On Tips After Trump Promoted The Idea


U.S. Rep. Matt Gaetz (R-FL) speaks as Rep. Marjorie Taylor Greene (R-GA) and Rep. Thomas Massie (R-KY) listen during a news conference at the U.S. Capitol on November 17, 2022 in Washington, DC.(Photo by Alex Wong/Getty Images)

A pair of House Republicans introduced legislation on Tuesday that would slash federal taxes on tips after former President Donald Trump promoted the idea earlier this month.

The bill, spearheaded by Rep. Thomas Massie (R-KY) and Matt Gaetz (R-FL), would “amend the Internal Revenue Code of 1986 to provide that tips shall not be subject to income or employment taxes.”

It takes inspiration and its name — the “Tax Free Tips Act ” — from a legislative push by Ron Paul, a former congressman and candidate for president, to nix federal taxation on tips.

“Ron Paul had it right and so does Donald Trump,” Massie said in a statement.

“Taxing tips is regressive and goes against American tradition,” Massie added. “But now digital payments allow the government to tax every transaction, even those that historically have not been taxed. With inflation raging, it only makes sense to eliminate the tax on tips and provide relief to working folks.”

Gaetz said he was “proud” to join Massie in co-sponsoring the tax-relief legislation.

“As the cost of living continues to rise, the hardworking men and women in the service industry, many of whom may be working a second job to make ends meet, must be allowed to keep every dollar of tip money they earn,” Gaetz said.

Trump said at a campaign stop in Las Vegas earlier in June that if he is re-elected to the White House in November, he wants to change the tax code to exempt tip income from federal taxes.

“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,” Trump said.

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A press release from Gaetz’s office noted that Rep. Marjorie Taylor Greene (R-GA) is an original co-sponsor of the legislation.

Greene posted to X after Trump’s comments about scrapping taxes for tips to say that she “absolutely” loved the plan.

She shared a photo of a receipt that had a message written on it that said,” VOTE TRUMP! No tax on tips!!” and encouraged followers to write the same thing on their own receipts.


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