Congressmen Matt Gaetz (R-Fla.) and Thomas Massie (R-Ky) have filed a bill to turn Donald Trump's proposal to eliminate federal taxes on tips into law.
The "Tax Free Tips Act of 2024" would abolished federal income and employment taxes on the tips of service industry workers. Trump tossed out the idea recently during a campaign rally speech in Las Vegas.
"As the cost of living continues to rise, the hardworking men and women in the service industry, many of whom may be working a second job to make ends meet, must be allowed to keep every dollar of tip money they earn," Gaetz said in a statement.
"Ron Paul had it right, and so does Donald Trump," Massie added. "With inflation raging, it only makes sense to eliminate the tax on tips and provide relief to working folks."
His vow to eliminate the tax on tips would cost the federal government up to $250 billion over 10 years, according to the watchdog group, Committee for a Responsible Federal Government.
While trying to win over voters in a battleground state that is heavily dependent on the hospitality industry, Trump told the crowd that he would get rid of taxes on tips "right away, first thing in office, because it's been a point of contention for years and years and years."
Rep. Marjorie Taylor Greene (R-Ga.) is an original co-sponsor of the legislation.
Gaetz made the announcement on the same day The House Ethics Committee on Tuesday gave an update into its investigation of him.
The probe now includes whether Gaetz engaged in sexual misconduct and illicit drug use, accepted improper gifts and sought to obstruct government investigations of his conduct, according to the Associated Press.
