Official White House announcements and records

Harris, Biden Support Trump's No Tax on Tips Proposal, Costing $250 Billion

Aug 12, 2024, 06:19 PM

Vice President Kamala Harris has proposed a plan to eliminate taxes on tips for service and hospitality workers, a policy initially introduced by former President Donald Trump during a visit to Las Vegas in June. The proposal has sparked a political debate, with critics labeling it as political pandering and questioning its fairness, as most tipped workers do not pay income tax and benefit from the Earned Income Tax Credit. The policy has been endorsed by the Culinary Workers Union in Nevada, despite their previous criticism of Trump's proposal. The White House has stated that President Joe Biden supports the idea and would sign a bill to eliminate taxes on tips, although it has not been a part of his administration's agenda until recently. The proposal is estimated to cost $250 billion, according to CBS MoneyWatch.