• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home Business & Finance

White House officials are considering a higher tax rate for the wealthiest Americans to help pay for cutting taxes on tips, report says todayheadline

March 31, 2025
in Business & Finance
Reading Time: 3 mins read
A A
0
White House officials are considering a higher tax rate for the wealthiest Americans to help pay for cutting taxes on tips, report says
4
SHARES
9
VIEWS
Share on FacebookShare on Twitter


  • An option under discussion in the Trump administration is allowing the top tax rate to go back up to help cover tax cuts on income earned via tips, a senior White House official told Axios. That comes as President Donald Trump’s tax cuts from his first term are due to expire at the end of the year, while Congress works on legislation to extend them.

The Trump administration is considering an option to let the tax rate on the wealthiest Americans go back up to help pay for tax cuts on income earned from tips, a senior White House official told Axios.

Ending taxes on tips was one of President Donald Trump’s top campaign pledges, and he has reaffirmed it since returning to the White House. But extending his earlier tax cuts and making them permanent was also a campaign pledge.

The Tax Cuts and Jobs Act of 2017 was Trump’s signature economic policy achievement in his first term and lowered the top income tax rate to 37%. The law expires this year, and failure to extend it would send the top rate back to 39.6%.

Republicans in Congress are crafting legislation to renew Trump’s tax cuts while also looking for areas to slashing federal spending to help offset some of the fiscal impact.

The possibility of letting the top rate rise comes as Republicans acknowledge the political risks of the tax-cut agenda, which Democrats have said will help the wealthy and result in cuts to Medicaid.

“If we renew tax cuts for the rich paid for by throwing people off Medicaid, we’re gonna get f–king slaughtered,” the White House official told Axios, which added that discussions are still early, and nothing has been decided yet.

Indeed, even former Trump adviser Steve Bannon has warned against Medicaid cuts amid a quiet rebellion among Republicans representing working-class and low-income areas.

“Medicaid, you gotta be careful,” Bannon said on his podcast last month. “Because a lot of MAGAs are on Medicaid, I’m telling you. If you don’t think so, you are dead wrong.”

The White House didn’t immediately respond to Fortune‘s request for comment.

Trump has also said his steep tariffs are another way to raised federal revenue, providing more leeway to cut income taxes.

Reports over the weekend said he is pushing his advisers to get more aggressive on tariffs, perhaps even a single levy of up to 20% on nearly all US trading partners.

Meanwhile, eliminating taxes on tips may not be as populist as it seems, as benefits would be limited while it could worsen tipping fatigue and encourage wealthier Americans to report more of their income as tips.

Families could their see annual tax bill come down by an average of $1,700 with the elimination of tip taxes, according to a recent report from The Budget Lab at Yale University.

But only about 4% of families report tips to the IRS, and they are mostly young, unmarried, and lower-income, the report added.

“This means that many tipped workers do not pay income tax to begin with and would not benefit from a new deduction,” the report said.

On the flip side, a separate report last month from the Economic Policy Institute warned that high-income professionals, like lawyers, financial advisers, and accountants, could report their fees as tips to avoid paying tax.

In addition, some low-income tipped workers would lose money by no longer being eligible for the Earned Income Tax Credit and Child Tax Credit, according to the report, while employers would have less incentive to raise base pay.

“A regressive tax gimmick that encourages the proliferation of tipping is not helpful to the workers who genuinely need help, and certainly not a ‘lifeline’ to anyone,” EPI said. “It would, however, be a boon to unscrupulous employers and tax cheats.”

This story was originally featured on Fortune.com


Tags: AmericanscuttingDonald TrumpHigherhouseofficialspayRatereporttaxTaxesTipstodayheadlinewealthiestWhite
Previous Post

Richmond Hill to exit drinks industry amid losses todayheadline

Next Post

World No. 6 Jasmine Paolini parts with coach Renzo Furlan todayheadline

Related Posts

Costco's newest find has fans delighted

Costco's newest find has fans delighted todayheadline

July 3, 2025
4

MasTec stock reaches all-time high at $172.83 todayheadline

July 3, 2025
6
Next Post

World No. 6 Jasmine Paolini parts with coach Renzo Furlan todayheadline

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
probiotics

Exploring probiotic use for maternal gut health

July 3, 2025
Heather C. Morrow sits in a garden.

Altadena residents are reluctant to sue L.A. County over botched evacuations during Eaton fire. Here’s why

July 3, 2025
House Republicans dismiss Elon Musk's primary threats over Trump bill

House Republicans dismiss Elon Musk’s primary threats over Trump bill

July 3, 2025
A passer-by walks past candidate posters for the July 20 Upper House election in Tokyo on July 3.

‘Japanese First’: PM Ishiba must address anti-foreigner sentiment ahead of Upper House poll

July 3, 2025

Recent News

probiotics

Exploring probiotic use for maternal gut health

July 3, 2025
0
Heather C. Morrow sits in a garden.

Altadena residents are reluctant to sue L.A. County over botched evacuations during Eaton fire. Here’s why

July 3, 2025
5
House Republicans dismiss Elon Musk's primary threats over Trump bill

House Republicans dismiss Elon Musk’s primary threats over Trump bill

July 3, 2025
4
A passer-by walks past candidate posters for the July 20 Upper House election in Tokyo on July 3.

‘Japanese First’: PM Ishiba must address anti-foreigner sentiment ahead of Upper House poll

July 3, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

probiotics

Exploring probiotic use for maternal gut health

July 3, 2025
Heather C. Morrow sits in a garden.

Altadena residents are reluctant to sue L.A. County over botched evacuations during Eaton fire. Here’s why

July 3, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co