Donald Trump’s 2024 campaign is gaining momentum with a bold new promise: to eliminate taxes on tips. This catchy slogan has become the rallying cry for his supporters, echoing the familiar themes of his previous campaigns, like "Build the wall." However, "No tax on tips!" stands out as a fresh and straightforward message that resonates with many Americans.
Tips are a significant part of income for around 14 million people in the U.S., including bartenders, waitstaff, and taxi drivers. Many Americans have fond memories tied to their experiences receiving tips, making this issue personal for a large segment of the population. Trump’s proposal aims to connect the immediate reward of tips to the hard work that earns them, arguing that the government should not take a cut.
The push to abolish the tax on tips is gaining traction in Congress. Senators Ted Cruz from Texas and Steve Daines from Montana are leading the charge, having drafted legislation to support this initiative. Key figures in the House and Senate, including Missouri Representative Jason Smith and Idaho Senator Mike Crapo, are on board, indicating that this tax cut could pass through reconciliation rules, which would prevent a filibuster.
This effort is part of a larger strategy to make the tax cuts from Trump’s 2017 Tax Cuts and Jobs Act permanent. Many of these cuts are set to expire at the end of 2025, which could lead to a significant tax increase of $4 to $5 trillion over the next decade. The 2017 tax cuts included important changes, such as nearly doubling the standard deduction and lowering the corporate tax rate from 35% to 21%.
The proposed changes aim to simplify tax filing for millions of households, as 90% now take the standard deduction, up from about 70% before the cuts. This means fewer people need to keep detailed records of their expenses during tax season. The child tax credit was also doubled, providing further financial relief to families.
Trump’s push for tax reform is not without its challenges. Democrats in Congress are expected to oppose the tax cuts, arguing that they benefit the wealthy and corporations at the expense of working Americans. However, many mainstream media outlets have acknowledged that the tax cuts provided relief to a broad swath of the population.
As the campaign progresses, Trump is focused on ensuring that the tax cuts remain in place without needing to be renewed every decade. This would allow businesses to plan for the future with more certainty regarding tax rates and investment costs.
In summary, Trump’s "No tax on tips!" pledge is shaping up to be a central theme of his 2024 campaign. It reflects a commitment to support those who rely on tips for their livelihood while also aiming to secure the broader tax cuts enacted in 2017. With strong backing from key legislators, this initiative could significantly influence the political landscape as the election approaches.