No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Friday, October 24, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Business

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

by TheAdviserMagazine
7 months ago
in Business
Reading Time: 3 mins read
A A
White House officials are considering a higher tax rate for the wealthiest Americans to help pay for cutting taxes on tips, report says
Share on FacebookShare on TwitterShare on LInkedIn



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—ing slaughtered,” the White House official told Axios, which added that discussions are still early and nothing has been decided yet.

Indeed, even former Trump advisor 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 raise federal revenue, providing more leeway to cut income taxes.

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



Source link

Tags: AmericanscuttinghigherHouseofficialsPayrateReporttaxtaxesTipsWealthiestwhite
ShareTweetShare
Previous Post

5 Ways to Handle Debt Before Debt Handles You

Next Post

*HOT* Mini Portable Handheld Turbo Fans as low as $4.74!

Related Posts

edit post
Harmony Gold Mining completes MAC Copper acquisition

Harmony Gold Mining completes MAC Copper acquisition

by TheAdviserMagazine
October 24, 2025
0

Harmony Gold Mining has completed the acquisition of MAC Copper, the proprietor of the high-grade CSA copper mine in New...

edit post
Trump shutting down trade talks with Canada could give Beijing another advantage

Trump shutting down trade talks with Canada could give Beijing another advantage

by TheAdviserMagazine
October 24, 2025
0

President Trump has terminated trade talks with Canada over an anti-tariffs ad featuring Ronald Reagan. If Canada’s Prime Minister Mark...

edit post
Paytm and Vedanta emerge as top buys amid sectoral rotation and profit booking: CA Rudramurthy BV

Paytm and Vedanta emerge as top buys amid sectoral rotation and profit booking: CA Rudramurthy BV

by TheAdviserMagazine
October 24, 2025
0

After six consecutive sessions of solid gains, the Nifty paused for breath on Friday, slipping below the 26,000 mark. While...

edit post
What to know about Ireland’s election as the country votes for a new president

What to know about Ireland’s election as the country votes for a new president

by TheAdviserMagazine
October 24, 2025
0

Voters in Ireland are going to the polls Friday to elect one of two women as their new president for...

edit post
Tomatoes Rs 600 per kg, capsicum Rs 300: Pakistanis are paying a heavy price after conflict with Afghanistan

Tomatoes Rs 600 per kg, capsicum Rs 300: Pakistanis are paying a heavy price after conflict with Afghanistan

by TheAdviserMagazine
October 24, 2025
0

Prices of essential goods have sharply increased in both Pakistan and Afghanistan after border closures disrupted cross-border trade between the...

edit post
Goldman aims for ‘PE returns’ with new ETF

Goldman aims for ‘PE returns’ with new ETF

by TheAdviserMagazine
October 23, 2025
0

Goldman Sachs Asset Management is teaming up with MSCI Inc. to launch an exchange-traded fund that aims to deliver returns...

Next Post
edit post
*HOT* Mini Portable Handheld Turbo Fans as low as .74!

*HOT* Mini Portable Handheld Turbo Fans as low as $4.74!

edit post
What to look for when Delta Air Lines (DAL) reports its Q1 2025 earnings results

What to look for when Delta Air Lines (DAL) reports its Q1 2025 earnings results

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
The CFO of JPMorgan Chase Says Consumers Are Resilient. Union Pacific’s CEO Sees Cracks. Where Does That Leave You?

The CFO of JPMorgan Chase Says Consumers Are Resilient. Union Pacific’s CEO Sees Cracks. Where Does That Leave You?

0
edit post
Claiming Girlfriend or Boyfriend as a Dependent on Taxes

Claiming Girlfriend or Boyfriend as a Dependent on Taxes

0
edit post
Avihai Stolero, Themis buy mineral water co Mey Eden

Avihai Stolero, Themis buy mineral water co Mey Eden

0
edit post
EconLog Price Theory: Pricing Plumbing

EconLog Price Theory: Pricing Plumbing

0
edit post
Harmony Gold Mining completes MAC Copper acquisition

Harmony Gold Mining completes MAC Copper acquisition

0
edit post
China’s Baidu to test robotaxis in Switzerland in race for Europe

China’s Baidu to test robotaxis in Switzerland in race for Europe

0
edit post
The CFO of JPMorgan Chase Says Consumers Are Resilient. Union Pacific’s CEO Sees Cracks. Where Does That Leave You?

The CFO of JPMorgan Chase Says Consumers Are Resilient. Union Pacific’s CEO Sees Cracks. Where Does That Leave You?

October 24, 2025
edit post
Harmony Gold Mining completes MAC Copper acquisition

Harmony Gold Mining completes MAC Copper acquisition

October 24, 2025
edit post
How Men and Women Perceive Fairness in the Workplace As Parents

How Men and Women Perceive Fairness in the Workplace As Parents

October 24, 2025
edit post
U.S. CPI Comes In Lower Than Expectations, Bitcoin Rises

U.S. CPI Comes In Lower Than Expectations, Bitcoin Rises

October 24, 2025
edit post
The Myth of the “Robber Barons”: James Hill versus the Crony Competitors

The Myth of the “Robber Barons”: James Hill versus the Crony Competitors

October 24, 2025
edit post
EconLog Price Theory: Pricing Plumbing

EconLog Price Theory: Pricing Plumbing

October 24, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • The CFO of JPMorgan Chase Says Consumers Are Resilient. Union Pacific’s CEO Sees Cracks. Where Does That Leave You?
  • Harmony Gold Mining completes MAC Copper acquisition
  • How Men and Women Perceive Fairness in the Workplace As Parents
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

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
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.