Harris Matches Trump’s Proposal to Ban Taxes on Tips at Las Vegas Rally

Vice President Kamala Harris announced a plan to eliminate taxes on tips for service and hospitality workers if she wins the presidency, mirroring a proposal put forth by former President Donald Trump earlier this year. Harris made this pledge during a rally in Las Vegas, a critical battleground state where the hospitality sector plays a significant role in the economy.

Speaking to a crowd of over 12,000 supporters on Saturday, Harris emphasized her commitment to supporting working families, stating, “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.”

Harris’s proposal came shortly after receiving the endorsement of the Culinary Workers Union, a powerful labor group in Nevada. This endorsement is expected to bolster her campaign’s appeal among the state’s sizable workforce in the hospitality industry, which accounts for roughly a quarter of Nevada’s employment.

Trump, who had introduced the tax-free tip idea during a rally in Las Vegas in June, quickly responded to Harris’s announcement on social media, accusing her of copying his proposal. “She played ‘COPYCAT’ with, NO TAXES ON TIPS!” Trump wrote on Truth Social.

Both candidates’ proposals would require new legislation and congressional approval to become law. Harris’s campaign acknowledged this challenge and indicated that any tax-free tip policy would likely include an income cap and safeguards to prevent higher-income individuals from exploiting the policy.

Critics of the proposal, including some economists, argue that eliminating taxes on tips might not effectively target the intended beneficiaries—low-income workers. They caution that such a policy could result in significant revenue losses for the federal government, with estimates ranging from $150 billion to $250 billion over the next decade. Additionally, some experts believe that a tax-free tip policy may not be the most efficient way to alleviate the tax burden on low-income Americans, as only a small portion of this workforce earns tips, and many already pay little to no income tax.

Despite these concerns, the proposal has gained traction as both Harris and Trump vie for the support of voters in Nevada, a state where the service industry plays a crucial role in the economy.