Trump Vows to Fulfill Campaign Promise For No Taxes on Tips: 'Your Tips Will be 100% Yours'

Donald Trump reiterated his campaign promise on Saturday to eliminate federal taxes on tips, a move he plans to prioritize in collaboration with Congress to provide financial relief for tipped workers.

Trump first introduced the idea of "no taxes on tips" during a campaign rally in Las Vegas in June 2024, citing it as a way to ease the financial burden on workers in industries reliant on tipping, NPR reported.

The proposal gained traction among voters, contributing to his electoral success in key states like Nevada. Efforts to formalize the policy have resurfaced as Congress prepares to revisit expiring provisions in Trump's 2017 tax overhaul.

Speaking at a Las Vegas rally, Trump vowed to deliver on his promise, saying the legislation would allow tipped workers, such as restaurant staff and valet attendants, to keep "100% of their tips."

"If you're a restaurant worker, a server, a valet, a bell hop, a bartender, one of my caddies ... your tips will be 100% yours," Trump said.

While the idea enjoys bipartisan political support, including backing from the National Restaurant Association, economists and labor advocates argue it could complicate tax policy, reduce federal revenue by up to $250 billion over 10 years and overshadow broader reforms like raising the federal minimum wage for tipped workers, currently set at $2.13 per hour.

Congressional debate is expected to intensify as the legislation progresses, with proponents emphasizing the immediate financial relief for workers and critics warning of potential loopholes and inequities in the tax code.

Unions and advocacy groups, such as Nevada's culinary union, have voiced support for the proposal but continue to push for complementary reforms, including higher minimum wages.

If enacted, the policy could reshape income dynamics for tipped workers.

Originally published on Latin Times