Harris Advocates for Removing Taxes on Tips

During a rally in Las Vegas on Saturday, Vice President Kamala Harris expressed her support for the idea of eliminating taxes on tips, a move that aligns her with the proposal championed by former President Donald Trump. This initiative aims to exempt tip income from federal income and payroll taxes, a strategy that seeks to attract working-class voters.

Harris highlighted her commitment to working families in her speech, saying, “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.”

This pledge closely mirrors Trump’s remarks made earlier in June in Las Vegas, where he indicated support for hotel workers and service industry employees, promising that if reelected, there would be no taxes on tips.

The backing Harris received from Culinary Union 226 ahead of her rally was significant, as many workers from this union were present. The Culinary Union represents around 60,000 workers in the Las Vegas and Reno areas, showing that Harris is keen to secure the trust and support of this influential group.

While the proposal has gained traction in discussions within political circles, questions remain about its feasibility and potential financial implications. Analysts from a budget watchdog suggested that implementing such a tax exemption could result in a loss of federal revenue, estimating a decrease of up to $250 billion over the next decade.

Any alterations to the taxation of tipped income would necessitate Congressional approval. As the expiration of Trump’s 2017 tax cut law approaches next year, lawmakers are anticipated to review national tax policies, offering a potential platform for this discussion.

In response to Harris’s remarks in Las Vegas, Trump took to social media platform Truth Social to criticize her. He accused her of plagiarizing his proposal, stating, “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!”

As the 2024 election approaches, both Harris and Trump appear to recognize the value of courting service industry workers, a demographic that has faced numerous challenges, particularly in the wake of the pandemic. The discussion surrounding the taxation of tips could be an essential topic for both campaigns, as they seek to resonate with voters looking for economic relief.

Overall, Harris’s rally in Las Vegas not only showcased her policy initiatives but also highlighted a broader strategy within both political parties to connect with working-class voters. The elimination of taxes on tips, while still a subject of scrutiny, underscores the ongoing debate surrounding taxation and the support for service workers, which will likely continue to be a focal point in both party platforms as the election approaches.