During a roundtable event at 180 Church in Detroit, Michigan, former President Donald Trump reiterated his promise that his administration would not tax tips.
Speaking to a restaurant owner during the event on Saturday, Trump assured that if re-elected, his administration would exempt tips from taxation for service industry workers like waiters, waitresses, and car attendants.
“Let your waiters and waitresses, and anyone else who gets tips know, because a lot of people do,” Trump stated. “Car attendants, caddies, and various other people receive tips. We will not tax tips—the tax will be immediately removed.”
Trump criticized the current administration under President Biden for implementing new regulations targeting tipped workers. “The government under Biden has passed new regulations that severely impact these individuals,” he added. “The enforcement level is unprecedented, almost to the point of criminal prosecution, targeting waiters, waitresses, and others receiving tips.”
This is not the first time Trump has made such a pledge. At a recent rally in Las Vegas, Nevada, he promised that his administration would not impose taxes on tips.
Trump’s pledge has inspired some people to write, “A vote for Trump is a vote for no tax on tips,” on their receipts in restaurants and other tip-based businesses.
At Turning Point Action’s “People’s Convention,” Trump reiterated his commitment to eliminating taxes on tips. “I have announced that I will eliminate taxes on tips for restaurant and hospitality workers, and anyone else relying on tips,” he declared to the crowd. “No more taxes on tips! No taxes on tips! None, none.”
According to the Internal Revenue Service (IRS), tips are defined as “discretionary (optional or extra) payments determined by a customer that employees receive from customers.” Tips can be received in various forms, including cash, electronic payments, and through tip pooling or sharing arrangements.
The IRS states that all cash and non-cash tips received by employees are considered income and are subject to federal income taxes. However, if the total tips received by an employee from a single employer in a calendar month are less than $20, these tips are not required to be reported or taxed. This includes cash tips, charged tips distributed by the employer, and tips received from other employees under any tip-sharing arrangement.
