The US could lose hundreds of billions of dollars because of a commitment by President Trump

Mr. Trump spoke in Las Vegas on January 25.

CNN reported on January 25 that US President Donald Trump had just arrived in Las Vegas, after winning the election in Nevada last year, and during a series of exciting activities in his first week in office.

In his speech here, he did not offer many new details, but said he would begin working with lawmakers in the coming weeks to draft new tax legislation, including eliminating the tax on tips.

He said he once asked a waitress who complained about tips being taxed, which led to the idea of ​​eliminating the tax.

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The Culinary Workers Union Local 226 welcomed Trump’s proposal on January 25 but said more needs to be done. The union also wants the president to change the $2.13 minimum wage for tipped workers, which is currently in place in some states.

Eliminating the tip tax was a frequent campaign promise of Mr. Trump last year, but it would cost the government a huge amount of revenue. It also comes at a time when Republicans in Congress have pledged to extend the 2017 Tax Cuts and Jobs Act, which could cost $4 trillion.

It is unclear whether Mr. Trump wants to eliminate federal income tax and payroll tax on tips, although he has hinted that he would eliminate both.

While eliminating both taxes would benefit more people, it would also cost more money. Eliminating just the income tax on tips would reduce the budget by $106 billion over 10 years, according to Republicans on the House Budget Committee.

If both the federal income tax and the payroll tax on tips were eliminated, federal revenue would fall by $150-250 billion over a decade.

In 2023, the United States will have about 4 million tipped workers, about 2.5% of the total workforce, according to the Yale Center for Budget Policy Research. Tips are not the primary source of income for most of these people.

Source: https://thanhnien.vn/my-co-the-that-thu-hang-tram-ti-usd-vi-mot-cam-ket-cua-tong-thong-trump-185250126082723866.htm