Trump promised to cut tax on tips. That’s trickier than it sounds

Cindy Kramer, 38, works well over 60 hours a week juggling four different jobs in Staten Island, New York, to support her child and make ends meet. Two of those jobs are bartending.

Cindy Kramer, 38, works well over 60 hours a week juggling four different jobs in Staten Island, New York, to support her child and make ends meet. Two of those jobs are bartending. Like many in the service industry, Kramer is in favor of President-elect Donald Trump’s campaign promise to eliminate tax on tips, one that Vice President Kamala Harris also endorsed with certain guardrails and which has already seen movement in Congress. “Of course, it will make me less stressed (to have) a couple hundreds in my pocket,” Kramer said. She added she isn’t sure if she currently makes enough from bartending to pay federal income tax. But whether Kramer could actually see those savings is uncertain. With Trump slated to take office in January, only a small sliver of employees – which include restaurant servers, hospitality workers, waiters, bartenders and hairdressers – would see the tax benefit. That’s because a large share don’t earn enough to pay federal income tax. Trump had previously suggested he would eliminate federal income and payroll taxes on tips. But questions remain on how that would work and whether it would be possible to eliminate both those taxes. Trump has not provided many details about the specifics of his plan. Tax cut promises were among the biggest economic reasons why some communities voted for Trump. With many Americans worn down by inflation, a flurry of pledges including on overtime pay and Social Security benefits also struck a chord.