Top GOP senator floats bill to end taxed tips in nod to Trump campaign pledge

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The legislation would mark the latest attempt by Trump-aligned Republicans to appeal to working-class voters, particularly in service-oriented states like Nevada.

, a member of Senate GOP leadership, wants to pass into law a campaign pledge by former President Donald Trump to“It’s a stroke of genius by President Trump, and it shows the American people how in touch he is with the challenges of the working class in our great country,” Daines said Wednesday on Fox Business’sthe presumptive GOP nominee came about the idea from an unusual source: an unnamed waitress he recently encountered, according to Republican senators who recounted Trump’s remarks.

“The funniest thing he talked about, in my mind, was how he came up with the brilliant idea of exempting tips from being taxed with the income tax,” Sen. Kevin Cramer said. “He would like to tell you that was incredible research and policy discussion. But the secret is he got it from a waitress.” While Daines’s forthcoming legislation is unlikely to gain traction in a Democratic-led Senate, it signals the policy priorities for Republicans next year if they regain the majority. Daines sits on the Senate Finance Committee, which has jurisdiction over taxation. Trump would be unable to implement the proposal without the help ofDaines made the case that forgoing taxes on tips would offset inflation and spur economic growth by incentivizing more employment.

“When you move the American people from being dependent on the federal government to being employed, that creates taxable revenue,” Daines said. “By actually lowering

 

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