AS BIG OR BIGGER THAN ERTC?

Former President Donald Trump promised that if elected president in November, his administration will eliminate taxes on tips.

Remember, when Trump was President before, he passed the “qualified business income deduction” or QBI.  This is a 20 percent automatic deduction for business profits which can be carried forward.

As a preparer of thousands of business tax returns, I can say with no doubt, that the QBI has saved my clients hundreds of thousands of dollars in taxes.  

The QBI is set to expire in 2025.  

No tax on tips would be as big a benefit to restaurant owners as the ERTC as well as a huge benefit to tipped employees.  Trump may be able to get this done even without legislative approval  because of the nature of tips.

Restaurant owners should be promoting this with their employees as hard as they can.