WASHINGTON ― President Donald Trump on Saturday said a legislative package he’s hammering out with Republican lawmakers to enact his domestic agenda will include his campaign pledge to eliminate taxes on tips.
Trump made the commitment in a speech in Las Vegas, a city known for having a large number of culinary and hotel workers who rely on tips. His push comes as the White House and Republican congressional leaders have been in talks about using the budget reconciliation process to pass sweeping proposals on energy, the border and taxes.
“We’re going to get it for you,” Trump said at the Circa Resort and Casino in Las Vegas. “No tax on tips.”
More:Trump invited by Speaker Johnson to give first address to Congress on March 4
“So, if you’re a restaurant worker, a server, a valet, a bellhop, a bartender, one of my caddies ‒ I go through caddies like candy, if I play badly, I always blame my caddy ‒ or any other worker who relies on tipped income, your tips will be 100% yours.”
Trump, who was sworn into office for a second term Monday, credited the no-tax-on-tips proposal with helping him in the 2024 election carry Nevada, which he won by about 3 percent over Vice President Kamala Harris. On the campaign trail, Harris adopted a similar proposal to end taxes on tips after Trump rolled out his plan.
Passing legislation through a special process known as reconciliation allows budget-related bills to get a floor vote in the Senate without needing 60 votes to overcome a filibuster. Republicans, who hold a 53-47 majority in the Senate, can, as a result, pass a reconciliation package by a party-line vote, making it easier to win approval.
More:Trump’s first week: New president moves with lightning speed to overhaul government
A top item in Republicans’ reconciliation bill is expected to be an extension of Trump’s 2017 cuts from his first term that are set to expire at the end of the year, in addition to other tax cuts Trump has floated.
“How about just no tax?” Trump said Saturday, responding to a woman who shouted in support of the idea from the crowd. “You know, if the tariffs work out like I think, a thing like that could happen, if you want to know the truth.”
The Committee for a Responsible Federal Budget, a nonpartisan fiscal watchdog group, estimated eliminating taxes on tips could reduce federal revenues by $150 billion to $250 billion over the next decade.
Some hardline conservative Republicans have said they want steep tax cuts in exchange for their support to raise the debt ceiling, which will need to happen for the U.S. to continue to borrow. Meanwhile, the Republican-controlled Congress must act before March 14 to fund the government or risk a shutdown.
Republicans have disagreed on the tactical approach to pass Trump’s agenda through reconciliation. Trump and House Speaker Johnson want to try to pass his reconciliation package through one bill, but Senate Republicans have talked about multiple pieces of legislation.
Reach Joey Garrison on X @joeygarrison.
