Former President Donald Trump stirred up excitement during a rally in Las Vegas by proposing a significant change to the federal tax code. Speaking to an enthusiastic crowd, Trump announced his intention to push for the elimination of federal taxes on tip income if he is reelected to the presidency in November.

Trump, fresh off a busy tour of the west coast, made this pledge to a crowd of hospitality and restaurant workers, a significant portion of whom rely heavily on tips. “So this is the first time I’ve said this, and for those hotel workers and people that get tips, you’re going to be very happy because when I get to office, we are going to not charge taxes on tips, on people making tips,” Trump declared. His statement was met with loud cheers from the audience.

🚨 President Trump announces he will ask Congress to eliminate all taxes on TIPS for restaurant workers and hospitality workers pic.twitter.com/5EKGzXUbOk

— Trump War Room (@TrumpWarRoom) June 9, 2024

He affirmed his commitment to making this change a priority, saying, “We’re not going to do it, and 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 — and you do a great job of service, you take care of people.”

Trump noted the potential for controversy but stood firm in his belief that it was the right move although it will be fun to hear Democrats try to fight putting money back into the hands of Americans. “And I think it’s going to be something that is deserved — more importantly — popular or unpopular, I do some unpopular things too, if it’s right for the country, I do what’s right,” he continued. “But — so those people that have jobs in restaurants or whatever the job may be, a tipping job, we’re not going after it for taxes anymore, that will be ended.”

Political commentator Phil Kerpen noted that this proposal aligns with a long-standing idea from former Congressman Ron Paul, who argued that tips are gifts rather than wages. “This is a long-time Ron Paul proposal. His argument is that tips are gifts, not wages. Always a crowd pleaser in Nevada,” Kerpen pointed out.

This is a long time Ron Paul proposal. His argument is that tips are gifts not wages. Always a crowd pleaser in Nevada. https://t.co/cvJP7fVaiI

— Phil Kerpen (@kerpen) June 9, 2024

Supporters of the idea echoed this sentiment, with one saying, “Tips are a financial thank you to show appreciation for good service and it makes sense they should not be taxed. That folks, is just one way to stimulate the economy & put $ back in the people’s pocket.”

Tips are a financial thank you to show appreciation for good service and it makes sense they should not be taxed. That folks, is just one way to stimulate the economy & put $ back in the people’s pocket. https://t.co/IVtscISQYX

— MAGA ME (@MyHandleNo) June 9, 2024

Trump’s proposal, if implemented, could significantly impact workers in the hospitality and service industries, providing them with a more substantial take-home income which is more than anything Biden has proposed.