Michael Whatley holds campaign roundtable on 'No Tax on Tips' as Senate race heats up

North Carolina's Republican candidate for U.S. Senate, Michael Whatley, says he wants tipped workers in the state to keep more of their money. 

Whatley touted the position at a restaurant in Zebulon Wednesday, where workers who rely on tips shared their challenges. They told Whatley that the cost of everything is going up, and taking home their full tip would make things a little easier.

"There's been days I've been in the restaurant for nine hours and I've walked out with $30 ... I think its kind of ridiculous to give some of that to the government, since it's a gift from the customer to me so I feel like I deserve to keep it so I can sustain myself," said Tres Malpass, who works as a server in Raleigh.

Whatley said it goes to the voters' bottom line and making things more affordable.

"People want to take home more money. They want to keep more money. We want here in Wake and everywhere else to focus on what we're going to do to make sure their tax burden is low," Whatley said.

A policy cutting federal taxes on tips was enacted last year when President Donald Trump's signed a sweeping tax and spending law known as the "One Big Beautiful Bill." A group of Republican legislators in March proposed a bill to scrap taxes on tips at the state level as well, but it has failed to gain traction.

Whatley said Wednesday he thinks tipped workers, who can make a minimum wage as low as $2.13 an hour, should keep what tips they earn without giving any to the government.

Whatley accused his challenger, two-time Governor Roy Cooper, of being pro-tax, noting he voted to raise taxes in the legislature and vetoed a tax cut as governor.

"I think it's very important to note that Roy Cooper said that he would have voted against the bill that created no tax on tips," Whatley said, referring to Trump's signature legislation. "And we want to talk about the differences that we have on tax policies."

In response, Cooper’s campaign accused Whatley of supporting policies that increase health care premiums and electricity costs. 

"Roy Cooper cut taxes for working families and is running for the U.S. Senate to make stuff cost less. Meanwhile, Washington D.C. insider Michael Whatley ... spent his career delivering for corporations and special interests at the expense of North Carolina families," a campaign spokesperson said.

Both men are vying for the seat being vacated by Thom Tillis in the U.S. Senate, who chose not to seek reelection following disputes with Trump.

'One of his best choices'

High gas prices and trade wars have driven up the cost of all kinds of goods, leaving voters less satisfied with the economy. Whatley and Cooper have emphasized affordability issues during campaign events in recent months. 

About 55% of North Carolina adults polled in March by Elon University said the economy has gotten worse during Trump’s second term. That’s up from 49% in September. And 47% gave the economy a ‘D’ or ‘F’ grade in March, up from 43% in September.

Cooper spent the primary focused on economic issues — a top concern of North Carolina voters, and one Whatley pressed as he stumped for President Donald Trump ahead of the 2024 election. Back then, Whatley regularly tied rising consumer prices — from energy to groceries to housing — to the policies of then-President Joe Biden. Cooper and other Democrats have called out Republicans for rising inflation and said solutions need to start at the root of the issue.

That’s why David McLennan, a Meredith College political science professor, said it’s a smart political move for Whatley to focus on the tax issue. “He's got to talk about something in the economy, and this may be one of his best choices,” McLennan said.

“With so many other things not being very positive — gasoline prices, rising costs — this is the opportunity for Whatley to talk about and support something that people, a large number of North Carolinians, feel is very positive, which is not taxing tips,” McLennan said. “... The question is: Will his support for no-tax-on-tips really be outweighed by what people see on a regular basis at the gas pumps or what they pay at the grocery store?”

Seniors also received big tax credits, others received tax deductions. And Whatley is expected to tout those wins in the months ahead. “He'll talk about those things and say that Roy Cooper is the high tax candidate, while he is the low tax candidate,” McLennan said. 

The challenge facing Whatley and other Republicans running in the midterm elections is if the conflict in the Middle East is resolved but gas prices don’t abate quickly. “Their best hope is that again we'll see a turnaround before November in some of these price increases we've seen,” McLennan said. “Economists would say even if the war were to end today, we’ll have sticky gas prices.”