Sen. Steve Daines of Montana is introducing a bill to eliminate taxes on tips, a proposal first suggested by former President Donald Trump during a speech in Las Vegas. Despite some skepticism from influential Republicans citing concerns about the national debt and fairness to non-tip earners, Sen. Daines spoke about the bill on Fox News.
According to Senator Daines, the idea for the bill came from a waitress who questioned why tips were being taxed. He plans to introduce the bill in the Senate Finance Committee, where he is a member with jurisdiction over taxation. The bill aims to eliminate federal taxes on tips.
The committee’s research group indicates that exempting tips could potentially harm the federal budget, with estimates suggesting a loss of up to $250 billion over the next decade. NonStop Local will provide further coverage as this bill progresses.
