Trump Proposes Exempting Tips from Federal Taxes, Drawing Mixed Reactions

The former president's plan to end taxes on tips aims to appeal to service workers but faces skepticism from lawmakers and experts.

Trump's proposal seeks to eliminate federal income taxes on tips to benefit service workers.
Republican lawmakers are divided, with some praising the idea while others worry about fairness and fiscal impacts.
Democrats and labor experts criticize the plan, citing Trump's past policies that harmed tipped workers.
The proposal could cost the federal government up to $250 billion over ten years, impacting Social Security and Medicare funding.
Some experts argue the plan could improve tax compliance and benefit state tax revenue if properly structured.