In a private meeting with Senate Republicans last week, former President Donald Trump introduced a new campaign pitch that has gained popularity among the caddies at his golf course near Mar-a-Lago: the idea of ending taxes on money earned from tips. This proposal, aimed at courting working-class voters in swing states with significant service industries, such as Nevada, Arizona, and Georgia, is likely to become a key talking point in Trump's re-match against President Joe Biden this fall.

However, while Trump's pitch was greeted with enthusiasm in the room of senators, its fate as a serious policy plan on Capitol Hill remains uncertain. Several influential Republicans have expressed skepticism, citing concerns about the rising national debt and the fairness of exempting tip earners while others continue to pay taxes on their earnings.

The idea of ending taxes on tips was not only mentioned to Senate Republicans but also brought up in an earlier meeting with House Republicans, as revealed by Rep. Tim Burchett,R-Tenn. Trump reportedly shared how a waitress had sparked the idea during a conversation. Burchett, a Trump ally, described the proposal as "smart politics" that has gained traction organically.

Amongst the senators who attended the closed-door meeting, Sen. Ted Cruz, R-Texas, praised the idea, stating that it could alter voter perceptions of the parties. Cruz emphasized that workers in industries reliant on tips, such as waiters, waitresses, taxi drivers, and bellhops, could significantly benefit from such a policy change. He aimed to challenge the stereotype that Republicans are solely the party of the wealthy, while Democrats represent the poor and working class.

However, not all Republicans are fully convinced about the feasibility and fairness of Trump's tip tax proposal. Rep. Chip Roy, R-Texas, expressed concerns about selectively favoring tip earners over other individuals with similar wages, potentially posing legal questions regarding equality. Rep. Vern Buchanan, R-Fla., vice chair of the tax-writing Ways and Means Committee, also raised concerns about the growing national debt, urging caution before implementing such a policy.

Implementing a policy change to exempt tips from taxes would require Congress to pass legislation. The expiration of major parts of the Trump tax cuts at the end of 2025 could provide an opportunity for Trump's tip proposal to be included in efforts to rewrite the tax code if he is re-elected. Notably, exempting tips from income and payroll taxes could result in a reduction of federal revenue by up to $250 billion over a decade, according to estimates from the Committee for a Responsible Federal Budget.

When asked about Trump's tip idea, Biden White House adviser Lael Brainard responded cautiously due to Hatch Act prohibitions on political activity by West Wing officials. She highlighted Biden's commitment to implementing policies that address workers' wage concerns, such as raising the minimum wage and removing the tipped minimum wage, potentially leading to an additional $6,000 in income per year for Nevada workers.

Trump, meanwhile, continued to promote his tip proposal during a birthday celebration with supporters in Florida, emphasizing how a waitress in Las Vegas had inspired the idea. Supporters were encouraged to spread the word by writing "Vote for Trump because there's no tax on tips" on restaurant receipts.

While some Republicans, including Rep. Marjorie Taylor Greene, R-Ga., and Rep. Byron Donalds, R-Fla., expressed support for the proposal, others, like Sen. Kevin Cramer, R-N.D., see it as a promising way to win over working-class voters.

The economic impact of the proposal remains a point of contention. Despite concerns about the potential increase in national debt, supporters like Burchett believe that the money saved by eliminating taxes on tips would quickly be reinvested in the economy, benefiting workers and stimulating growth.

As the campaign heats up, Trump's proposal to end taxes on tips promises to be a topic of debate and discussion among Republicans, with its potential impact on the national debt and its appeal to working-class voters hanging in the balance.