President Biden would sign a bill that would eliminate taxes on tipped wages, the White House said Monday, seeming to agree with a policy first floated by former President Trump.
White House press secretary Karine Jean-Pierre stated the Biden administration’s position during a news briefing.
“Look, this is something that the president supports,”she said. “He supports eliminating taxes on tips for service and hospitality workers while also raising minimum wage and preventing the wealthy from gaming the system.”
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Vice President Kamala Harris has also taken the same stance on taxing tips. On Saturday, she promised to endorse policies to benefit working families.
“It is my promise to everyone here when I am president, we will continue our fighting for working families of America including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers,” she said at a campaign rally in Las Vegas.
Trump first proposed the idea of eliminating taxes on tips for restaurant and hospitality workers, in June.
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“This is the first time I’ve said this and for those hotel workers and people that get tips, you’re going to be very happy, because when I get to office we are going to not charge taxes on tips, people making tips… It’s been a point of contention for years and years and years, and you do a great job of service, you take care of people, and I think it’s going to be something that really is deserved,” Trump said back in June during a rally in Las Vegas.
He criticized Harris over the weekend, accusing her of trying to mirror his proposal.
“Kamala has no imagination, whatsoever, as shown by the fact that she played ‘COPYCAT’ with, NO TAXES ON TIPS!” he wrote on Truth Social. “The difference is, she won’t do it, she just wants it for Political Purposes!” Trump posted on Truth Social. “This was a TRUMP idea – She has no ideas, she can only steal from me. Remember, Kamala has proposed the LARGEST TAX INCREASE IN HISTORY – It won’t happen.”
House Republicans in June introduced legislation to end the taxation on tips.
“As the cost of living continues to rise, the hardworking men and women in the service industry, many of whom may be working a second job to make ends meet, must be allowed to keep every dollar of tip money they earn,” Rep. Matt Gaetz, R-Fla., wrote on social media at the time.
The Biden administration rolled out a voluntary tip reporting system last year for industry workers that works to streamline tax compliance on tips.
The plan was criticized by tax experts at the time as a crackdown on “waitresses’ tips” after the IRS hired 87,000 new agents under the Biden administration, Fox News Digital reported last year.
