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No Tax on Tips May Not Help GOP in Midterms

New York Times Top Stories •
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Outside a golf resort in Oro Valley, Ariz., Logan Bigelow, 28, tallied how much he had benefited from a law enacted last year that limited taxes on tips. He figured his tax refund had increased by $200 to $300, and some friends pulling in $700 in tips a night had noticed bigger boosts. But none seemed enough to make up for other costs. “I wish it helped out a little more than it did,” Mr. Bigelow said. “The cost of gas — it’s getting outrageous. And how much health care premiums have gone up is out of control.”

Republicans in Congress had hoped the tax-and-spending-cut bill would redeem them on the campaign trail. But in an election defined by the high cost of living, the benefits appear swamped by economic stress, exacerbated by the war with Iran and GOP moves that yanked government support. Among those was refusing to extend health care subsidies under the Affordable Care Act, causing premium spikes.

G.O.P. leaders have promoted the bill as an answer to rising costs. Speaker Mike Johnson said during a campaign stop, “We have more jobs coming home, more wages rising, more working families keeping more of what they earn.” House Republicans’ super PAC recently announced a more than $22 million campaign promoting the tax cuts.

The Tax Foundation found taxpayers would see a nearly $2,300 average tax cut in 2026. But an NBC poll in September found 42 percent of voters were less likely to support a candidate backing the measure, while 36 percent were more likely. In southeast Arizona, Representative Juan Ciscomani is leaning heavily on the tax cut measure, while his Democratic challenger, Jo Anna Mendoza, has hammered him over cuts to social safety net programs.

Source: New York Times Top Stories · Summarized by HeadlinesBriefing