Leading Republican senator proposes legislation to eliminate taxes on tips, aligning with Trump’s campaign promise
Senator Steve Dainess (R-MT) is planning to introduce legislation aimed at eliminating taxes on tipped wages, a policy originally promised by former President Donald Trump. As a member of Senate GOP leadership and chair of the Republicans’ campaign arm, Daines is targeting this legislative move to attract working-class voters, especially in service-heavy states like Nevada. He praised Trump’s initiative as a reflection of the former president’s understanding of working-class challenges. This effort by Trump-aligned Senate Republicans was discussed on Fox Business’s “Mornings with Maria,” highlighting it as a strategic appeal to these constituents. During Trump’s recent visit to Washington, D.C., Senate Republicans shared that the inspiration for this tax exemption came from interactions with the public during his campaign events.
Sen. Steve Daines (R-MT), a member of Senate GOP leadership, wants to pass into law a campaign pledge by former President Donald Trump to eliminate taxes on tipped wages.
Daines, who chairs the campaign arm of Senate Republicans, plans to unveil legislation in what would mark the latest attempt by Trump-aligned Republicans to appeal to working-class voters, particularly in service-oriented states like Nevada.
“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’s Mornings with Maria.
Senate Republicans who met with Trump during his trip to Washington, D.C., last week detailed how the 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.
Trump first rolled out the plan publicly during a Las Vegas rally this month.
“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 (R-ND) 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 of Congress.
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Daines made the case that forgoing taxes on tips would offset inflation and spur economic growth by incentivizing more employment. His bill will not include spending offsets to account for any potential loss in tax revenue.
“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 taxes, you get more people working, and they start paying taxes.”
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