Kamala Harris Joins Trump in proposing no tax on tips. This is what I think will happen.
No Tax on Tips Fan Club Expands
At a rally in Las Vegas, Harris Calls for No Taxes on Tips, Borrowing a Trump Idea
“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 said. The idea could prove popular in the swing state of Nevada, which is populated by casino and other service-industry workers who rely on tips.
Trump in June at his own rally in Las Vegas floated a plan to eliminate taxes on tips, an idea he later said that he came up with after having a conversation with a waitress in Las Vegas. Trump narrowly lost Nevada in 2016 and 2020, and the state is competitive again this year, ranking as one of six tossup states in the presidential contest, according to the Cook Political Report, an independent elections arbiter. The state is also a Senate battleground. Sen. Jacky Rosen (D., Nev.) has already backed eliminating taxes on tips and is one of this year’s most embattled Democratic incumbents.
Trump accused Harris of copying his plan for political advantage. “This was a TRUMP idea—She has no ideas, she can only steal from me,” he wrote on Truth Social, his social-media platform. His campaign began testing out a new moniker, calling her “Copy Cat Kamala,” and complained that her stance contradicts a Biden administration proposal unveiled last year to establish a voluntary tip-reporting program.
There is likely to be a large debate in Washington in 2025 over the tax code, as big sections of the 2017 tax-cut law are scheduled to expire. The next president will have the opportunity to shape these changes during negotiations with Congress.
Bad Policy, Good Politics
Policies that favor one group over another are popular but unwise. Why should servers get tax breaks that no one else gets?
Most of this benefit will go to servers who are lucky enough to be working in an upscale restaurant or location.
How about treating everyone the same for a change? Of course, that would kill the mortgage interest deduction as well. Good luck to the politician who proposes that.
The tax code is a complicated mess because of vast amounts of “Me Too” vote buying BS.
Buying Votes
This will buy votes. It won’t matter one bit that Trump proposed it first.
Anyone for Trump specifically because Trump proposed it, now has a choice.
I foresee a debate one-liner, where Harris responds “It’s the only good Idea you ever had, so naturally I embraced it.
Where this ide goes depends on who wins and whether one party wins the trifecta.
What Will Happen?
- Republican Trifecta: No tax on Tips
- Democrat Trifecta: No tax on tips
- Republican White House But No Trifecta: Democrats won’t support the idea
- Democrat White House But No Trifecta: Republicans won’t support the idea
Trump Fires Arrows Missing the Target Badly
Meanwhile, while Democrats have rallied around Kamala Harris, Trump is still fighting the 2020 election.
In a feud the party thought was long over Trump is throwing bombs at popular Republicans like Georgia Governor Brian Kemp instead of focusing on the economy.
For discussion, please see Trump Fires Arrows Missing the Target Badly, Will a Recession Save Him?