Axios reported that the Trump Administration may allow 2017 tax cuts to expire for the richest 1 percent of Americans as a way to keep his campaign promise not to tax tips.
The move would adjust the top tax rate from 37% to the pre-2018 rate of 39.6%, according to the report. It would also lower the threshold of the top rate from $609,351 for an individual or $731,201 for a married couple, Axios reported.
Donald Trump pledged to eliminate federal income tax on tips during a Las Vegas rally in June last year.
According to the nonpartisan Committee for a Responsible Federal Budget (CRFB), this pledge, along with extending Trump’s signature tax cut of 2017 and some other Trump proposals, could increase the debt in the United States by as much as $11 trillion within the next decade.
The report didn’t estimate how much it would generate.
According to the report, this move will help counter Democrat criticisms of Trump’s Department of Government Efficiency for cutting federal spending in order to give tax incentives to wealthy people.
Axios reports that White House officials told them that the talks were still in their initial stages.
