Uber CEO, US President Back Tax-Free Tips for Drivers
Uber CEO Dara Khosrowshahi expressed support for President Donald Trump's initiative to eliminate taxes on tips received by ride-hailing drivers.
"The President has said he believes in no taxes on tips generally. We think it's a terrific idea and will strongly support that initiative," Khosrowshahi said at an event in Miami.
Trump's proposal, initially announced in 2018, aims to benefit workers in the hospitality industry, which employs a significant portion of Nevada's workforce.
During a recent conference, Trump stated his intent to collaborate with Congress to significantly reduce taxes for individuals and businesses.
"We're going to dramatically cut taxes for families, workers, and companies, including no tax on tips, no tax on Social Security, and no tax on overtime," Trump said.
According to a Yale Budget Lab study, approximately 3% of taxpayers would benefit from the tipped-earnings exemption, while those receiving tips may earn less than the federal tax threshold.