‘Bar Rescue’ host Jon Taffer says Trump’s tax-free tip pledge is ‘massive’
A legendary problem-solver in the restaurant industry has voiced his excitement about a potential future where servers’ tips aren’t taxed.
"It's massive. I think the consumer loves it as much as the employee," "Bar Rescue" host and executive producer Jon Taffer said on "Fox & Friends" Friday.
"In the restaurant industry, we're struggling to find employees, to keep employees. Can you imagine if you worked in a steakhouse that's saying you make $100 a night in tips, now you get to keep that money at the end of the week? You made $500 in cash," he added. "Better for the employee, better for the industry."
Earlier this month, former President Donald Trump raised the idea of tax-free tips during a rally in Las Vegas, telling the crowd, "When I get into office, we're not going to charge taxes on tips, people making tips."
KEVIN O'LEARY SLAMS GAVIN NEWSOM AS ‘A BAD MANAGER’: CALIFORNIA ‘IS A SHELL OF WHAT IT USED TO BE’
"We're going to do that right away, first thing in office, because it's been a point of contention for years and years and years," Trump said.
Multiple GOP senators said he again raised the idea in a closed-door meeting with them last week. And on Tuesday, Republican representatives introduced a new bill aiming to end the taxation on tips.
"If I was the customer tipping and I left $10 on the table, I love the idea that that employee gets the whole $10. So I think there's a consumer appreciation of this policy as well. It's terrific," Taffer reacted.
"The industry needs it, the employees need it. And, I'm thrilled that Trump has even mentioned this policy and is so committed to it," he continued. "It's a great policy shift. The industry needs it. And I think the consumer's going to appreciate it as well."
However, the nonpartisan Committee For a Responsible Federal Budget (CRFB) projected that if implemented, the proposal could reduce federal revenue by at least $150 to $250 billion over a decade.
Currently, both cash and non-cash tips are subject to federal income taxes.
Taffer noted if there’s anything he’s learned in recent years, it’s that "politics is not about people."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"You can hate an individual, but love their policies. You can love the individual and hate their policies. What we are living through now is a consequence of policies that have caused these inflationary impacts, these payroll impacts," the "Bar Rescue" host said.
"When we vote, we need to think about policies, and how does that impact our individual communities as well as our nation?"
Taffer then referenced policies like California’s $20 minimum wage, which "are going to devastate many, many communities."
FOX Business’ Elizabeth Elkind contributed to this report.