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Republican lawmakers are acting now on President Trump’s proposal to offer millions of American workers tax-free tips.
The 45th president was widely applauded for committing to eliminating taxes on service workers’ tips, per RSBN.
Now, Reps. Thomas Massie, R-Ky., Matt Gaetz, R-Fla., and Marjorie Taylor Greene, R-Ga., are driving this plan forward.
According to Breitbart, Gaetz and Massie reintroduced former Rep. Ron Paul’s “Tax Free Tips Act” legislation from 2011.
Gaetz told Breitbart in a statement, “As the cost of living continues to rise, the hardworking men and women in the service industry, many of whom may be working a second job to make ends meet, must be allowed to keep every dollar of tip money they earn.” He added, “I am proud to join with Rep. Thomas Massie in co-leading this important tax-relief legislation.”
“Ron Paul had it right and so does Donald Trump,” said Massie in a statement, according to Breitbart.
He also said, “Taxing tips is regressive and goes against American tradition. But now digital payments allow the government to tax every transaction, even those that historically have not been taxed.”
“With inflation raging, it only makes sense to eliminate the tax on tips and provide relief to working folks,” the Kentucky congressman concluded.
The bill is also co-sponsored by Rep. Marjorie Taylor Greene, who posted about the move to X.
She noted that she is “proud” to support the bill. “President Trump is right, no one should be taxed on the tips they receive for providing a good service,” she continued.
Appropriately titled the “Tax Free Tips Act of 2024,” the bill states, “Tips shall be treated as property transferred by gift.”
This six-page act also strikes requirements for employers to receive tip statements from employees for tax purposes. It also differentiates between wages and tips, noting that tips are not the same as wages and should not be treated as such.
