J.D. Vance Proposes Firing IRS Agents to Pay for Trump’s ‘No Tax on Tips’ Plan
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Republican vice presidential nominee J.D. Vance made waves at a Las Vegas rally on Wednesday when he suggested that former President Donald Trump would fund his plan to eliminate taxes on tips by firing IRS agents. The proposal, aimed at alleviating financial pressures on workers who rely on tips, has sparked debate about its feasibility and potential impact on the federal budget.
During the rally, Vance was asked how Trump would cover the revenue shortfall if the “no tax on tips” proposal were implemented. Vance responded by downplaying the financial impact, claiming that the lost revenue from not taxing tips would be offset by reducing government spending.
“To answer your question, the details do matter, obviously, but I think that people overestimate the budgetary hit of no taxes on tips,” Vance said. He went on to argue that the current system is inefficient and unnecessarily burdens workers in industries like hospitality and gaming. “Frankly, a lot of what we get out of taxing tips right now… you have IRS agents harassing casino workers and servers, and it costs a lot of money to harass middle-class people.”
Vance’s solution? Cut the IRS workforce. “Why not just give them their money back, fire the IRS agents, and we’ll all be more prosperous, and Americans will have more money in their pockets,” he added. While the idea of easing the tax burden on tipped workers may appeal to some voters, the financial viability of the plan has been met with skepticism. Critics question how eliminating taxes on tips would impact the federal budget, particularly at a time when Republicans are already grappling with how to pay for extending the 2017 tax cuts.
According to a recent report from The New York Times, Republicans have struggled to find ways to cover the cost of those tax cuts, which are estimated to total more than $4 trillion over 10 years. This challenge is compounded by rising interest rates and a growing national deficit.
“Mr. Trump’s agenda overall could cost as much as $15 trillion over 10 years,” the report noted, citing estimates from the nonpartisan Committee for a Responsible Federal Budget. This staggering figure would be on top of the $22 trillion the U.S. is already projected to add to the national debt over the same period.
The combination of Trump’s broader economic plans, including the proposed tax cut on tips, has raised concerns about further swelling the national deficit. Critics argue that cutting IRS agents, as Vance suggested, would reduce the government’s ability to collect taxes effectively, potentially exacerbating the deficit rather than alleviating it.
As the 2024 election approaches, proposals like these are sure to generate debate about the trade-offs between tax relief and fiscal responsibility. While Trump and Vance may appeal to voters by promising lower taxes and less government interference, the long-term implications of such policies remain uncertain, particularly in an era of mounting federal debt.
