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Vice President Kamala Harris suggested she supports eliminating federal income and payroll taxes on tips, echoing a policy proposed by former President Donald Trump.
What’s the deal: While speaking to supporters in Las Vegas, Nevada, Vice President Harris said, “It is my promise to everyone here when I am president, we will continue to fight for working families, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers.”
Initially proposed by Trump: Former President Donald Trump originally proposed eliminating taxes on tips about two months ago at a campaign event in Nevada. The proposal garnered praise from various Nevada-based unions whose workers primarily earn their income through tips.
Trump criticizes Harris: In a post on TruthSocial, Trump wrote, “Kamala Harris, whose “Honeymoon” period is ENDING, and is starting to get hammered in the Polls, just copied my NO TAXES ON TIPS Policy. The difference is, she won’t do it, she just wants it for Political Purposes! This was a TRUMP idea – She has no ideas, she can only steal from me. Remember, Kamala has proposed the LARGEST TAX INCREASE IN HISTORY – It won’t happen. MAKE AMERICA GREAT AGAIN!!!.”
Digging Deeper: Despite promises from both Vice President Kamala Harris and former President Donald Trump to eliminate these taxes, any changes to the taxation of tipped income would require approval from both the House of Representatives and the Senate. The legislative process would involve:
- Drafting a bill.
- Navigating it through various committees.
- Subjecting it to debates and votes in both chambers.
Given the potential to reduce federal revenue by up to $250 billion over the next decade, some lawmakers are likely to scrutinize the proposal.
