In his 2024 presidential campaign, Trump pledged to eliminate taxes on tips, appealing to service workers and aiming to win their votes. Despite this promise, he has not delivered on it. Analysts point out that the alleged tax savings would provide minimal benefits, as many tipped workers already earn below taxable incomes. Furthermore, experts suggest that a broader tax relief for all working-class individuals would be more advantageous than a specific focus on tips. Overall, Trump's track record raises questions about the feasibility of this promise materializing in his presidency.
Trump has not kept his promise, but the elimination of taxes on tips would not have been a huge benefit to the poor, anyway, since most tipped workers don't make enough money to pay any taxes.
Many experts doubted the efficacy of eliminating taxes on tips for a number of reasons. First, many people under-report the amount of tips they receive, so the savings will be minimal at best.
The tax break favors some service workers more than others, and providing an overall tax break for the working class would be more effective than just targeting tips.
Trump’s first term as president overwhelmingly benefitted the wealthy and resulted in one of the largest wealth transfers from the poor and middle class to the rich.
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