Khosrowshahi Backs Trump's Proposal to Remove Tip Taxes

Uber CEO Dara Khosrowshahi has expressed strong support for former U.S. President Donald Trump's proposal to eliminate taxes on tips. Speaking at a conference hosted by Saudi Arabia’s sovereign wealth fund in Miami, Khosrowshahi stated:

"I think the President has said he believes in no taxes on tips generally. We think it's a terrific idea and we will be very, very supportive of that initiative."

Khosrowshahi’s stance comes as Uber continues to navigate economic challenges, including its Q4 revenue performance, which exceeded expectations despite stock declines.

Trump's Tax Proposals and Political Strategy

Trump initially proposed removing taxes on tips in June last year as part of his campaign efforts. The promise was aimed at gaining support from service workers, particularly in Nevada, where over 20% of jobs are in the tip-heavy hospitality sector. He also pledged broader tax cuts for individuals and businesses.

Research on the Impact of Tip Tax Exemptions

A study by Yale University's Budget Lab found that only 3% of taxpayers nationwide would benefit from the tip tax exemption, as many workers who receive tips already earn too little to owe federal taxes.