President Trump on Saturday at a rally promised to fulfill his promise of a campaign to eliminate taxes on the advice.
“In the coming weeks, I will work with Congress to get an account on my desk, which reduces taxes for workers, families, small businesses, and it is very important that it promises my promise,” Trump said. “We’ll get it for you – there is no advice tax.”
The president, speaking at a casino in Las Vegas, said the tax reduction was led by his legislative program for this new congress.
“If you are a restaurant, server, maid, bell, bartender, one of my caddy,” said the president, “Your advice will be 100% yours.”
Trump’s comments came in a 40-minute speech over the weekend, which sounded like a winning tour more than a policy plan. The president shook a list of changes he made and proudly speaks to the fact that he is already taking “nearly 350 executives to turn the terrible failures and betrayal” he inherited. Trump has issued dozens of executive orders, actions and memorandums after its opening last Monday.
Trump first sailed the idea of ”no tax on advice” in the same city last June during a campaign rally. “When I get to the office, we will not charge taxes on advice, for the people who make advice,” Trump said at the time, promising that he would do this “immediately, first something to service.”
The four -word slogan was plastered on billboards, and the candidate for democratic President Kamala Harris introduced a similar version of the idea. He was so popular with the subgroup of voters that Trump credited him, helped him win the key to Nevada in the presidential election.
The president cannot unilaterally change the tax code. But the large parts of Trump’s vast tax law for 2017 will expire at the end of 2025 and this would allow the congress to amend the existing tax policy.
Earlier this month, the two Nevada democratic senators joined forces with a group of Republicans to re -introduce legislation This would release advice from federal income taxes. “This is something that could bring more people into the restaurant’s workforce. We are an industry that is chronically not,” says Sean Kennedy of the National Restaurant Association, which approved the bill.
But even if this idea “has no taxes on the Soviets” has some support from the industry and some bilateral political support, tax experts and economists do not love it.
“I think this is actually a terrible policy,” said Heidi Shirholz, President of the Institute for Economic Policy and Labor Economist in the Obama Administration. “If you really want to help workers, do it directly by raising the federal minimum wage and gradually eliminating the minimum wage.”
She says she is worried that this policy can delay inertia to process the worker’s minimum wage.
The federal minimum wage for slope workers is $ 2.13, although some countries have made a higher indicator.
“There is no real economic virtue of the idea,” said Bill Gail, a Urban-Brookings tax policy and an economist in the George HV Bush administration. “This is not a good way to help low-income workers, as the majority of low-income workers do not receive advice.” This is a point Alex Murion, a senior analyst at the Tax Foundation, echoed.
“Why the waiter who earns much of his income from the advice will reduce a very large reduction in taxes and the cashier he earns, do you know, a little about nothing in the advice, why should they not reduce the tax?” he said.
According to Budget Laboratory at Yale UniversityA huge majority (over 90%) of low -income workers are not directed.
And so Muresianu, Gale and Shierholz claim that creating a carcass only for tank workers can open the system to more abuses, with high -income winners retrying their income as tips. Gail also said that this would make the tax code “more complicated”.
“And to do this at the same time, you know, they are trying to reduce IRS funding, it’s just another example of why it’s a bad idea,” he added.
Then there is also the question of lost revenue. The Committee on Responsible Federal Budget forecasts This elimination of federal income and salaries tips can reduce revenue by $ 150 billion to $ 250 billion in 10 years.
Despite experts’ fears, the idea remains politically popular.
“I would say that economists have never worked for $ 2.13 an hour, so I don’t listen much to what they say,” Ted Papagerge told Nevada’s culinary union, NPR told the concerns that experts are caused.
Pappageorge said that the union, which represents about 60,000 hospitality workers in the state, welcomed the idea of eliminating taxes on councils.
“This should happen,” he said, adding in the same breath that he also wanted to see an increase in the minimum wage for slopes.
“The reality is both useful. And we dispute President Trump and Republicans and Democrats to do both,” saying that he appreciates the idea of eliminating taxes on advice, but he will also continue to fight for the other issue.
“This idea for $ 2.13 per hour is just obscene,” he said. “It’s really.”
And so he will take the changes in the policy he can get so far. Because, he says, no taxes on the advice help reduce the costs of living for working families who need immediate relief.
Copyright 2025 NPR