Overview

• 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.