A.G. Gancarski
President Donald Trump reportedly is going to talk about one of his most popular campaign promises: ending taxes on tips.
Per the Associated Press, Trump is set to speak to the Culinary Union in Las Vegas, and the proposal is going to be featured in the remarks.
Such a thing can’t be accomplished by executive order, of course, and to that end Sunshine State conservatives U.S. Sen. Rick Scott and U.S. Reps. Vern Buchanan and Byron Donalds have legislation ready to go in the Senate and the House.
The three talked about the bill earlier this month.
“During my time as Governor of Florida, I worked to cut taxes over 100 times to help businesses thrive, families keep more of their hard-earned dollars and turn our entire economy around,” Scott said.
“After four years of President Joe Biden’s skyrocketing inflation making life harder for families, it’s about time we follow Florida’s turnaround playbook and take significant action to cut taxes with the No Tax on Tips Act. President Trump is laser-focused on getting our economy back on track, and passing this bill ASAP will be a great start.”
“Florida’s tourism-driven economy thrives because of the hardworking men and women in our restaurant and hospitality industries, many of whom rely on tipped wages to support their families,” Buchanan said.
“I’m introducing the No Tax on Tips Act with Congressman Donalds to ensure that these essential workers are able to keep more of the money they’ve earned, without interference from Washington. As Vice Chairman of the House Ways and Means Committee, and a former chairman of the Tax Subcommittee, cutting taxes for working Americans is my top priority.”
“For far-too-long, Washington’s focus has been on how much of your paycheck politicians and unelected bureaucrats will take to fund their destructive agendas. Americans deserve to take home more of what they have earned, especially given the self-inflicted economic hardships created by the Biden administration,” Donalds added.
“Hardworking Americans across our Southwest Florida community, the Sunshine State, and the nation deserve a government that will put them first.”
Industry groups, including the National Restaurant Association, the Professional Beauty Association and the International Franchise Association, are on board with the bill as well.
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The Associated Press contributed reporting
6 comments
Sundance
January 25, 2025 at 5:28 pm
No tax. Less retirement ss. Screw yourselves
MarvinM
January 25, 2025 at 9:22 pm
You bring up a good point.
Doesn’t help that this article has no link to the proposed legislation.
It’s not clear whether the No Tax On Tips is only on an individual’s federal taxes or if it is exempt from payroll taxes (Social Security). In many cases employers pay half those taxes.
So Sundance has a very important point – If you don’t pay SS taxes on tip income, and any employer have doesn’t have to pay SS taxes on your earned tips, then, yeah, you will end up getting less, a lot less, as your SS benefit when you start to collect at 67, or whatever age.
MH/Duuuval
January 26, 2025 at 10:57 am
Good point: A MAGA win-win with employees not paying Social Security taxes and employers not paying match into Social Security. (Part I of MAGA plan to save Social Security.)
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Harold Finch
January 26, 2025 at 11:19 am
Be realistic, any and all cash tips are never ever reported! This is ridiculous, many high end restaurants include a gratuity of 18% to 20%, and they may include those tips in with the hourly wage they pay, the majority do not.
A more practical process, would be to elimante taxes on SS for seniors over 70 years old.
JustBabs
January 26, 2025 at 4:33 pm
If this occurs, I will not longer be spending my hard earned, taxed income on tips, knowing that the recipient is getting special tax cuts on their income that is NOT afforded to those NOT in the service industy. Even though I know Trump is pushing it to save himself, as an employer, millions of dollars in his share of FICA taxes and employee salary reporting.