Vice President Kamala Harris’ “no tax on tips” pitch that she unrolled in Las Vegas one month after former President Donald Trump made the same proposal “blindsided” Democrats, some of whom had called Trump’s idea “bogus” and an “election-year ploy,” The Hill reported on Wednesday.
Harris told her supporters last weekend, “It is my promise to everyone here, when I am president we will continue our fight for working families of America, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers.” Trump proposed ending taxes on tips for service workers at his Las Vegas rally on June 9.
After Trump made the proposal, Democrats such as Senate Finance Committee Chair Ron Wyden (D-OR), Senate Finance Committee member Debbie Stabenow (D-MI), and senior member of the House Ways and Means Committee Rep. Lloyd Doggett (D-TX) blasted the Republican nominee. Wyden labeled Trump’s plan a “bogus proposal” while Wyden called it an “election-year ploy.” Just a few weeks later, their own party’s nominee made the same promise.
Some on the Left have also expressed concern that such a policy would give employers a reason to forgo raising hourly wages and result in businesses pushing even harder to solicit tips from customers.
“It’s not something I saw coming. I did not expect her to go on the tipped-wage thing. I did not see it as a serious proposal from Trump, and it doesn’t become a serious proposal now,” a senior Senate Democratic aide told The Hill.
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Steven Rosenthal, a senior fellow at the Tax Policy Center, said, “Trump proposed no tax on tips in June, and largely the Left has been beating up on that proposal. So for Harris to offer a largely identical [proposal], I think catches people short.”
“I try to call the balls and strikes straight. To me, both the Trump and Harris ‘no tax on tips’ are very poor ideas,” he added.
White House Press Secretary Karine Jean-Pierre said on Monday that President Joe Biden also supports eliminating taxes on tips for service workers.
“This is something the president supports. He supports eliminating taxes on tips for service and hospitality workers while also raising the minimum wage and preventing the wealthy from gaming the system,” Jean-Pierre said.
The White House press secretary was asked if Harris had stolen the idea from Trump and replied, “I’m not going to respond to a presidential candidate, and I think their campaigns speak to that directly. What I can say is this president, this vice president, have always had the backs of working people, always. And you see that in the policies that they have put forward.”
Trump blasted Harris after she promised to eliminate taxes on tips, saying, “She is conning the American public, and will flip right back.”
“I will MAKE AMERICA GREAT AGAIN! There will be no flipping!!!” he added.
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