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Harris Matches Trump's Pledge to Eliminate Tip Taxes, Prompting Some to Call Foul

 August 12, 2024
Both Vice President Kamala Harris and former President Donald Trump have publicly promised to abolish taxes on tips, aligning the two on a significant economic policy affecting service workers.

Vice President Kamala Harris announced her willingness to eliminate taxes on tips during a crowded event at the University of Nevada in Las Vegas, spurring claims that she effectively stole Trump's policy in order to curry political favor, as Axios reports.

This announcement came two months after Trump made a similar pledge.

Trump had first floated the idea following a discussion with a Nevada waitress, emphasizing his belief that tip earners were unfairly taxed.

Harris Gains Support from Culinary Union

The Culinary Union, representing 60,000 hospitality workers in Nevada, endorsed Harris shortly after her speech. This significant backing highlights the importance of service industry workers in her campaign, particularly in a battleground state like Nevada.

Harris’s proposal focuses on eliminating federal income taxes on tips. However, she has not clarified whether this would also apply to payroll taxes, which fund Medicare and Social Security.

Republican and Democratic Senators Back Cruz Bill

Sen. Ted Cruz has introduced legislation in line with this policy, which has garnered support from both Republican and Democratic senators, including Nevada's own Jacky Rosen and Catherine Cortez Masto.

The bipartisan support for this bill underscores the widespread acknowledgment of the financial challenges faced by tipped workers.

House Speaker Mike Johnson has expressed his determination to pass the bill swiftly, signaling strong Republican support for the initiative.

His stance was echoed by other Democratic lawmakers, like Rep. Ritchie Torres, who, despite generally opposing Trump, acknowledged the merit of this specific proposal.

Trump Criticizes Harris for Adopting His Idea

Reacting to Harris’s announcement, Donald Trump accused her of stealing his idea, framing it as a tactic for political gain. Trump’s critical stance was encapsulated in his statement where he claimed, "This was a TRUMP idea - She has no ideas, she can only steal from me," highlighting the competitive nature of their political rivalry.

A waitress in Nevada, whose conversation with Trump reportedly inspired his proposal, shared her frustration with the current tax system, saying, "They come in and they take so much of our money, it's just ridiculous."

Implications for Waitstaff Across America

With approximately 2.19 million waiters and waitresses across the U.S. as of 2022, the impact of this policy could be significant. Interestingly, two-thirds of these workers earn so little that they are exempt from federal income taxes, though they still pay payroll taxes.

This policy change could potentially alleviate some of the financial pressures faced by these workers, though the complete implications, especially regarding payroll taxes, remain uncertain.

Both Leaders' Commitments Highlighted in Speeches

Kamala Harris reiterated her dedication to working families in her speech, stating, "It is my promise to everyone here that when I am president, we will continue to fight for working families, including raising the minimum wage and eliminating taxes on tips for service and hospitality workers."

Johnson also committed to the legislative effort, assuring that "We will pass it as soon as we can," which could mean significant changes for service industry workers sooner rather than later.

Conclusion: A Rare, Yet Controversial Point of Agreement

In conclusion, the proposal to eliminate taxes on tips has not only showcased a rare bipartisan agreement but also highlighted the strategic positioning of both Harris and Trump as they appeal to working-class voters.

While the exact details of the tax elimination are still being debated, the support from various political figures and parties suggests a strong push towards legislative change that could benefit millions of Americans in the service industry.