Kamala Harris' adoption of Trump's 'No Tax on Tips' plan caught Dems off guard

The similar proposals have created an awkward situation for Democrats who had criticized Trump's plan.

Kamala Harris' adoption of Trump's 'No Tax on Tips' plan caught Dems off guard
AP Photo/Stephanie Scarbrough, Pool, File
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Vice President Kamala Harris has ignited controversy within Democratic circles by proposing to eliminate taxes on tips for service and hospitality workers, a policy strikingly similar to one put forward by former President Donald Trump just a month earlier.

The Hill reports that Harris' announcement in Las Vegas has "blindsided" some Democrats who had previously dismissed Trump's idea as "bogus" and an "election-year ploy."

Harris declared at a recent event, "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." This pledge closely mirrors Trump's proposal made at his Las Vegas rally on June 9.

The similar proposals have created an awkward situation for Democrats who had criticized Trump's plan.

Senate Finance Committee Chair Ron Wyden (D-OR) and committee member Debbie Stabenow (D-MI) were among those who had dismissed the idea when Trump proposed it. A senior Senate Democratic aide expressed surprise, stating, "It's not something I saw coming. I did not expect her to go on the tipped-wage thing."

Critics from both sides of the aisle have raised concerns about the potential implications of such a policy. Some worry it could discourage employers from raising hourly wages and lead to increased pressure on customers to tip.

Steven Rosenthal, a senior fellow at the Tax Policy Center, commented on the situation: "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." He added, "I try to call the balls and strikes straight. To me, both the Trump and Harris 'no tax on tips' are very poor ideas."

The White House has since confirmed that President Biden also supports eliminating taxes on tips for service workers. Press Secretary Karine Jean-Pierre stated, "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."

Trump responded to Harris' announcement by accusing her of "conning the American public," suggesting she would "flip right back" on the promise.

“I will MAKE AMERICA GREAT AGAIN! There will be no flipping!!!” he said.

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  • By Ezra Levant

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