Donald Trump has pledged to end taxes on everything from tips to Social Security and overtime pay if he's elected to the White House again.But he hasn't detailed how he would fund those ideas and avoid creating a huge budget shortfall, beyond arguing he will usher in an economic boom.
He argues his ideas would improve Americans’ personal financial standing and the overall U.S.economy.
A debate about the tax code will be a dominant legislative issue next year given that tax cuts Trump signed in 2017 will be set to expire.If he’s elected again, Trump could push Congress to enact some or all of his proposals, though that might be difficult if Democrats end up in control of either the House or the Senate.
Estimates from outside economic analyses of the costs of the various tax cuts ranged between nearly $6 trillion and $10 trillion over 10 years, depending on which ideas become policy and how they’re implemented.A look at Trump's various tax-related ideas:In June, Trump announced his plan to exclude workers' tips from federal taxes, saying he got the idea from a waitress at his Las Vegas hotel.“To those hotel workers and people who get tips, you are going to be very happy, because when I get to office we are going to not charge taxes on tips, people making tips,” Trump said, adding: "We’re going to do that right away, first thing in office.”Trump made the announcement in Nevada, a key battleground state with six electoral votes and home to the highest concentration of tipped workers in the country.Nevada has an average of 25.8 waiters and waitresses per 1,000 jobs.
President Joe Biden won the state in 2020, but the Trump campaign hopes to put it in play this fall.Trump has not specified whether he wants to exempt tips from just income taxes or from the payroll tax — which funds Medicare and Social Security — as well.Vice President Kamala Harris has echoed Trump's call for no taxes on tips, making a pledge that would apply to hospitality and service...