In June, former President Trump traveled to Las Vegas where he unexpectedly revealed a new tax idea: no taxes on tips. Why was Trump suddenly so keen on eliminating taxes on tipped earnings? Because he was trying to win the electorally important state of Nevada, which is home to a large number of Las Vegas-area service workers who rely heavily on tips for income.
This wasn't a policy that fit into some broader framework or comprehensive theory of how taxes should work. It was an idea, floated in the middle of a rambling speech, targeting a specific, electorally important group, and offering them a benefit through the tax code.
