Vice President Kamala Harris is taking a page out of former President Donald Trump's playbook, promising to eliminate taxes on tips paid to service workers if elected president. The move echoes Trump's own pledge made earlier this year.
Vice President Kamala Harris has announced her support for eliminating federal taxes on tips paid to workers in the service industry, mirroring a policy proposal previously put forth by former President Donald Trump. The announcement, made at a campaign rally in Las Vegas on Saturday, drew immediate criticism from Trump, who accused Harris of "stealing" his idea.
Harris's pledge aligns her with the Culinary Workers Union Local 226, which endorsed her candidacy. The union represents a significant number of service and hospitality workers in Las Vegas, a city heavily reliant on tourism.
Kamala Harris Emulates Donald Trump's Policy on Tax-Free Tips
"When I was attorney general of California, we worked together to crack down on wage theft," Harris said at the rally. "When I was a United States senator, we fought together for paid family leave and medical leave."
Harris's promise to eliminate taxes on tips was met with a swift response from Trump, who took to Truth Social to denounce the move.
Kamala Harris Emulates Donald Trump's Policy on Tax-Free Tips
"Kamala Harris, whose 'Honeymoon' period is ENDING, and is starting to get hammered in the Polls, just copied my NO TAXES ON TIPS Policy," Trump wrote in a post.
"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," he continued. "Remember, Kamala has proposed the LARGEST TAX INCREASE IN HISTORY - It won’t happen. MAKE AMERICA GREAT AGAIN!!!"
Kamala Harris Emulates Donald Trump's Policy on Tax-Free Tips
Trump had previously introduced his plan to eliminate taxes on tips for service workers during a trip to Las Vegas in June.
"For those hotel workers and people that get tips, you're going to be very happy, because when I get to office, we are going to not charge taxes on tips. … It's been a point of contention for years and years and years, and you do a great job of service, you take care of people and I think it's going to be something that really is deserved," Trump said at the time.
Kamala Harris Emulates Donald Trump's Policy on Tax-Free Tips
Eliminating taxes on tips has been a longstanding issue for service workers, who often rely on tips to supplement their income. According to the National Restaurant Association, tipped workers earn an average of $2.13 per hour in base wages plus tips.
The issue of taxes on tips has also been a source of debate among policymakers. Some argue that eliminating taxes on tips would provide a significant boost to the service industry and help to create jobs. Others contend that it would disproportionately benefit wealthy individuals and do little to help low-income workers.
Harris's announcement comes amid a broader debate about tax policy in the United States. Democrats have generally supported raising taxes on high-income individuals and corporations, while Republicans have favored tax cuts.
The Biden administration has proposed a number of tax increases, including a surtax on wealthy individuals, an increase in the corporate tax rate, and a limitation on the deductibility of state and local taxes. These proposals have faced strong opposition from Republicans, who argue that they would stifle economic growth.
The debate over tax policy is likely to continue in the lead-up to the 2024 presidential election. Harris's embrace of Trump's policy on tax-free tips is a sign that the issue will likely play a role in the campaign.
