Trumpâs Bullshit Promise to Stop Fucking Taxes on Tips
Get ready for the shocker...it's a fucking lie.
Alright, letâs talk about Trumpâs latest âgeniusâ idea: getting rid of taxes on tips for service workers. On the surface, it sounds like a great fucking deal. No more Uncle Sam snatching a chunk of the hard-earned cash tipped workers get for busting their asses. But, like everything with Trump, itâs a lot more complicatedâand probably not as straightforward as heâd like us to believe. So, letâs break this shit down. Whatâs the likelihood of it happening? Whatâs standing in the way? And what are the potential issues?
The Likelihood: Spoiler Alert, Itâs a Long Shot
1. Trumpâs Track Record on Promises
Letâs be real: Trump isnât exactly known for following through on his promises. Remember that whole âMexico will pay for the wallâ thing? Or how about his vow to "drain the swamp"? If history tells us anything, itâs that Trump loves to make big, flashy promises that sound good in sound bites but fall apart when it comes to actual policy.
2. Legislative Hurdles
Hereâs the thing: eliminating taxes on tips isnât something a president can just wave a fucking wand and do. Itâll require Congress to pass legislation, and thatâs where shit gets tricky. Democrats are unlikely to support it because theyâll argue itâs a regressive tax policy that doesnât address broader income inequality. Meanwhile, Republicansâwho love to talk about tax cutsâmight hesitate because itâll fuck up revenue streams without providing a clear alternative.
3. Economic Realities
The federal government relies on income taxes, including those from tips, to fund essential programs. Service industry workers collectively contribute billions in taxes every year. Cutting that out would leave a big-ass hole in the budget. And considering Trumpâs previous tax cuts already ballooned the deficit, itâs hard to see Congress being eager to add to the mess.
The Blockers: Whatâs Standing in the Way?
1. Complex Tax Laws
U.S. tax laws are already a dumpster fire of complexity. Tips are considered income, which means theyâre subject to income and payroll taxes. Changing this would require rewriting huge chunks of the tax code, which isnât exactly a quick or easy process. Not to mention, itâll fuck with Social Security and Medicare funding, which rely on payroll taxes.
2. IRS Enforcement
The IRS already struggles to enforce tip reporting as it is. A lot of tipped workers underreport their tips, either because they donât know theyâre supposed to or because theyâre trying to hold onto more of their cash. Eliminating taxes on tips could lead to even less reporting, creating an enforcement nightmare for the IRS.
3. Opposition From Other Stakeholders
Big businesses and restaurant industry groups might not be as excited about this as youâd think. Why? Because theyâd lose a big talking point when lobbying against raising the tipped minimum wage. Right now, they argue that tips supplement workersâ incomes enough to justify the shitty $2.13 federal minimum wage for tipped workers. If tips become untaxed, that argument goes out the fucking window.
4. State-Level Issues
Even if Trump somehow managed to pull this off at the federal level, states could still choose to tax tips. That means service workers in states like California or New York might not see much of a change. And good luck getting all 50 states on the same pageâthatâs about as likely as a Kardashian going a week without posting on Instagram.
The Issues: Why Itâs Not All Sunshine and Rainbows
1. It Wonât Solve Income Inequality
Letâs not pretend that this move is some revolutionary win for workers. At best, itâll put a little more money in their pockets. But it doesnât address the real fucking issue: tipped workers are underpaid as hell. Instead of eliminating taxes on tips, how about raising the goddamn tipped minimum wage? That would actually make a meaningful difference.
2. Revenue Shortfalls
As mentioned earlier, cutting out tip taxes would blow a hole in federal and state budgets. Where the fuck is that money going to come from? Unless thereâs a plan to replace the lost revenue, this idea is a fiscal nightmare waiting to happen.
3. Uneven Benefits
Not all tipped workers would benefit equally. High earners in fancy restaurants or bars would see a bigger boost than low-income workers at diners or smaller establishments. So, once again, the rich get richer while the rest get fucked.
4. Administrative Chaos
Changing tax laws is a bureaucratic shitshow. Employers would need to update their payroll systems, workers would need to adjust their withholding, and the IRS would have to overhaul its reporting guidelines. All of this costs time and money, which could outweigh any potential benefits.
5. Itâs a Distraction
Letâs be real: this promise is more about scoring political points than actually helping workers. Itâs a shiny object designed to distract from bigger issues, like income inequality, healthcare, and climate change. Workers deserve real fucking solutions, not half-assed ideas that look good on campaign posters.
So, Whatâs the Verdict?
The idea of eliminating taxes on tips sounds great on paper. Who wouldnât want to take home more of their hard-earned money? But when you dig into the details, itâs clear this promise is more complicated than Trump makes it out to be. Between legislative hurdles, economic realities, and the sheer logistical nightmare of changing tax laws, the chances of this actually happening are slim to none.
And even if it did happen, it wouldnât fix the systemic problems that tipped workers face. If Trump really gave a shit about service workers, heâd push for raising the tipped minimum wage or strengthening labor protections. But hey, flashy promises make for great headlines, right?
Citations
"How Tipped Minimum Wage Works." National Employment Law Project, 2023.
"Impact of Trumpâs Tax Cuts on the Federal Deficit." Center on Budget and Policy Priorities, 2022.
"Understanding Tip Income Reporting and Taxes." Internal Revenue Service (IRS), 2021.
"Challenges of Eliminating Taxes on Tips." Brookings Institution, 2023.
"State-Level Tax Policies on Tip Income." Tax Foundation, 2023.