CENTRAL MICHIGAN (WNEM) – The 2024 presidential election campaign continues to heat up after both Vice President Kamala Harris and former President Donald Trump each put forward a proposal for a “tax exemption on tips.”
Starting in February next year, waiters in Michigan will be paid minimum wage, and some fear they would earn less without tips.
On Friday, August 23, the Trump team held a special event in Burton.
Michigan Republican Chairman Pete Hoekstra said Trump’s plan to eliminate the tip tax would help the economy and put more money into workers’ pockets.
“We talk about what has happened in the restaurant industry over the last three or four years,” Hoekstra said.
The Trump-Vance campaign team and the Michigan State Republican Party were in Burton promoting Trump’s proposal to not tax tips.
“They’ll be able to provide for their families. They won’t have to ask themselves, ‘How much do we have to pay in taxes?’ They’ll take home what they earn and what they’re entitled to,” said Jason Hester, owner of Starlite Coney Island.
The former president’s challenger, Harris, also proposed her own “no tax on tips” policy.
The Committee for a Responsible Federal Budget estimates that Harris’ proposal, which would exempt tips from federal income tax and raise the U.S. minimum wage, would increase budget deficits by $100 billion to $200 billion over the next decade.
Meanwhile, Trump’s proposal to eliminate the federal tax on tips could cost as much as $250 billion.
Danielle Shock, a waitress at the Starlite Coney Island in Burton, estimates that without “taxes on tips” she could bring home $300 to $400 more per week.
“If you add it all up, that’s $1,200 a month. I could go out and buy a brand new house,” she said.
And Hester expressed concern that raising the minimum wage could do more harm than good.
“You could potentially go from a nice living wage to suddenly $14 or $15 an hour and people would stop tipping. Some might still tip, but there’s just no real definition of what’s going on,” Hester said.
Regardless of who wins in November, Congress would have to pass legislation for either plan to go into effect.
“Given the issues we have faced over the past few years, this bill is of utmost importance to our industry and will hopefully move us in a positive direction,” Hester said.
Currently, CBS News polls show that the race in Michigan is tied: Harris leads with 49 percent, Trump trails with 48 percent.
Subscribe to the TV5 Newsletter and receive the latest local news and weather reports directly to your email every day.
All rights reserved.
