Memeorandum points me to the Fox Business report, “Trump encourages voters to write ‘no tax on tips’ on restaurant receipts.”
Former President Trump on Friday encouraged his voters to write on restaurant receipts to spread the word of his proposal to eliminate taxes on tips.
Trump made the remarks at an event celebrating his 78th birthday in West Palm Beach with members of Club 47.
The former president told the crowd that as part of his plan for further tax cuts, he would eliminate taxes on tips for “restaurant workers, hospitality workers and anyone else that gets tips.”
“No tax on tips, okay? It’s done. Done. And we need to spread the word so that every time you leave a tip for the next five months, you put on the receipt, vote for Trump, because there’s no tax on tips,” Trump said.
[…]
Trump told the crowd Friday that restaurant workers, hotel workers, and caddies would most benefit.
“I think it’s going to be a great thing. You know they earned it,” Trump said, adding: “somebody does a good job is supposed to pay tax on it. So, we’re ending that immediately, effective immediately when we get in.”
This is just weird, no?
As a campaign stunt, it’s a bit odd, but at least it makes sense. Millions of people receive tips as a major, if not the major, source of their income and might well be persuaded to vote for Trump if they thought it would eliminate taxes on that income.
But, as a matter of public policy? Why would tipped workers be treated differently than others?
Leaving aside whether people receive tips because they did “a good job”—most of us tip out of obligation, with very little consideration of performance—but, presumably, most workers who get paid do sufficiently well at their job to keep it. So, if making money for good performance shouldn’t be taxed, most income should be excluded.
If the idea is that tipped workers tend to make relatively little money, then increase the standard deduction so as those making below whatever threshold we’re trying to buffer from federal taxation are excluded. There’s no obvious reason why a waiter or cabbie (much less a caddy) should pay taxes on a differential basis from a checkout clerk or janitor.
This part was also odd, but very Trump:
“I have announced that I will eliminate taxes on gifts for restaurant workers and hospitality workers. And anyone else who relies on tips, no more taxes on tips! None,” Trump said, noting that Kid Rock had taken up the suggestion to write on restaurant receipts.
Kid Rock shared a picture of his receipt from Jeff Ruby’s Steakhouse, for which he left a $400 tip.
“A vote for Trump is a vote for no tax on tips!” the musician wrote.
“Vote Trump! No tax on tips!!” Greene wrote on the receipt.
I’m not sure that Kid Rock, much less MTG, is a major influencer on undecided voters. And most folks would look at these receipts and wonder how they managed to spend so much money on a single meal. (Rock’s receipt includes 5 filet mignons, so presumably, he had a large party.) Rock is also a much more generous tipper than Greene.
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