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Donald Trump’s vow to stopping taxing tips is a modest but incredibly concrete step to showing what Trumponomics really means.
It’s not just a bid to win the votes of waitresses and baristas: The people that pay the tips will applaud, too.
You mean that tip to express your appreciation — and not to Uncle Sam.
It help workers — not with handouts, but by letting them keep more of what they earn, and by making it a lot easier to fill out their 1040s.
Plus, this reform will start helping the day it takes effect
The plan’s inspiration is telling, too: He got the idea from a waitress who drew his attention to the amount of her income that she had to fork over to the government.
Trump is proving he actually listens to regular people — and is determined to improve their lives, not just talk about it.
And it’s a big deal for those who work in service industry (sometimes making as little as $2 in base hourly pay) and survive on tips.
It will cost the government an estimated $150 billion to $250 billion over 10 years (assuming no supply-side effects), a miniscule share of the overall budget (but all the more reason for Trump to also rein in spending).
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When Trump signed the Tax Cuts and Jobs Act in 2017, liberals wailed that he was giving a break to the already-rich (a smear disproven by IRS data that show the middle class benefitted hugely).
Democrats have no way for to spin a break exclusively for hospitality workers as a gift to the wealthy.
Indeed, unions want Dems to outlaw tipping entirely, so make in easier to “organize” service workers.
Lower-income Americans have been hit hardest by Bidenflaton: Credit-card debt is at an all-time high and still climbing, as workers struggle to make ends meet with their paychecks alone.
Trump understands that workers should be taking more of those paychecks home.
The remedy to Americans’ economic pains is not more inflation-boosting Dem spending, it’s Trump’s pro-business and pro-worker policies.