Donald Trump promises to eliminate tip taxes if re-elected
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Donald Trump promises to eliminate tip taxes if re-elected

(NewsNation) — Former President Donald Trump has vowed to eliminate taxes on tip income if he wins a second term in the White House.

“As for hotel workers and tipped people, you will be very happy. Because when I get into office, we’re not going to collect tip taxes,” Trump said Sunday at a rally in Nevada.

The plan was met with resistance from labor leaders in Las Vegas, who called it a “wild campaign promise” and argued it was not a “real solution.”

Vegas Labor Leaders: Trump’s Pledge Was Unjustly Structured

The Culinary Workers Union criticized Trump’s tax plan after his rally in Las Vegas, calling it unfair and financially irresponsible.

They argue that higher-income households and corporations should pay a larger share.

They further argue that Trump’s tax policies did not result in higher wages for workers.

How does Trump’s plan compare to the Democrats’ plan?

The Biden administration is seeking to raise the federal minimum wage and phase out the tipped minimum wage for restaurant workers.

Democrats also support higher corporate taxes and tax increases for wealthy individuals with a net worth of more than $100 million.

Regardless of who wins the White House in November, lawmakers will have to reassess tax policy next year, when Trump’s 2017 tax cuts expire.

While these policies lowered overall taxes, they did not include provisions for tipped work.

What do economists say about this?

Economists suggest that cutting federal spending could ease economic pressures, but warn that Trump’s policies could further exacerbate inflation.

They further warn that his plan to impose tariffs on imports and an immigration plan, which he called “the largest deportation plan in American history,” could raise prices and dwarf any tax cuts.

The Trump campaign has not released a detailed economic plan but believes Biden’s climate change plan and renewable energy policies have hampered economic growth. The former president promises to resume deregulation if re-elected.