At a campaign rally in Las Vegas, Nevada on Sunday, former president Donald Trump said he will remove taxes on tips for service workers should he win in November.

“When I get to office, we are going to not charge taxes on people making tips,” he said, adding that it was the first time he has made the announcement and that he would remove the taxes as soon as he took office.

“So those people that have jobs in restaurants, whatever that job may be—a tipping job—we’re not going after them for taxes anymore.”

Learn the benefits of becoming a Valuetainment Member and subscribe today!

“It’s been a point of contention for years and years and years, and you do a great job of service, you take care of people, and I think it’s going to be something that really is deserved,” Trump continued.

A labor union for service and hospitality workers, The Culinary Union, did not welcome Trump’s promise: “Relief is definitely needed for tip earners, but Nevada workers are smart enough to know difference between real solutions and wild campaign promises from a convicted felon.”

According to Intuit, the Internal Revenue Service (IRS) treats tips as taxable income, drawing on them to reallocate to Social Security, Medicare, and other programs. Employers are required to pass along information about the amount of tips earned by their workers to the IRS.

The IRS specifies that the employee must report all tips earned in a month if they earned over $20 in tips. On a report, the employee must give their employers their name, address, social security number, the month or period, the total amount of tips received, and their signature. The IRS also notes that this applies to those who work in “restaurants, salons, hotels and similar industries.”

The Trump campaign just completed a successful fundraising tour of California, bringing in “$33.5 million in private fundraisers” according to a spokesperson.

Shane Devine is a writer covering politics and business for VT and a regular guest on The Unusual Suspects. Follow Shane’s work here.

Add comment