Taxation on Tipping

SOURCE thehill.com
Vice President Harris and former President Trump have both suggested ending taxes on tipping to support working-class voters. Harris pledged to fight for working families, raise the minimum wage, and eliminate taxes on tips for service workers. Trump criticized Harris for copying his proposal on Truth Social.

Key Points

  • Vice President Harris and former President Trump both support ending taxes on tipping
  • Changes to taxation on tipped income would require Congressional approval
  • Critics question the financial impact of eliminating taxes on tips

Pros

  • Supports working-class voters
  • Aims to benefit service and hospitality workers

Cons

  • Could result in a decrease of up to $250 billion in federal revenues over a decade
  • Requires Congressional approval