Folks, let’s dive into a political hot topic that’s got everyone talking! The Biden administration recently launched a program aimed at improving how tips are reported to the IRS, a full year before Vice President Kamala Harris made a bold campaign promise to eliminate tip taxes altogether if she wins the White House in 2024.
Here’s the scoop: Last year, the IRS and Treasury introduced the Service Industry Tip Compliance Agreement (SITCA) program. The idea behind it is to make tip reporting more efficient using modern technology—think point-of-sale systems and electronic payment methods. The program is voluntary for now but aims to become the main way service industry employers report tips in the future, streamlining the process for both taxpayers and the IRS.
Fast forward to Harris’ campaign rally in Las Vegas this past weekend. Harris took to the stage and promised that under her presidency, tips would no longer be taxed. This announcement struck a chord, especially in a city like Las Vegas, where many workers depend on tips in the service and hospitality industries. But here’s where it gets interesting—this pledge comes just two months after former President Donald Trump made the exact same promise during his own rally in Vegas.
“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 promised the crowd.
VP: 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. pic.twitter.com/WzXyCPiIAF
— Acyn (@Acyn) August 11, 2024
Trump didn’t waste any time responding to Harris’ announcement. He took to Truth Social, accusing Harris of stealing his idea, calling her out for lacking original ideas, and claiming she only wants to eliminate tip taxes for political gain. Trump didn’t hold back, reminding everyone that Harris has supported major tax increases in the past and suggesting she won’t actually follow through on her promise.
“Kamala Harris, whose ‘Honeymoon’ period is ENDING, and is starting to get hammered in the Polls, just copied my NO TAXES ON TIPS Policy. The difference is, she won’t do it, she just wants it for Political Purposes!” Trump posted. “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. MAKE AMERICA GREAT AGAIN!!!”
Kamala is offering NO TAXES on tips. This shows the creativity of the Trump campaign and the outride lack of good policy in the Kamala/Walz campaign. They best sounding thing they ‘came up with’ camp from Trump. He’s winning, and this is their concession. pic.twitter.com/yu48dIIf5z
— Doug In Exile (@douginexile) August 11, 2024
With Nevada being a key battleground state in the upcoming election, this back-and-forth could be pivotal. Trump currently leads Harris by nearly 4 points in Nevada, according to the Real Clear Politics polling average, making this a race to watch closely.
So, what’s the takeaway? As the 2024 election heats up, the battle over tip taxes is just one of many issues that will shape the outcome. Whether Harris’ promise will sway voters or if Trump’s accusation will stick, only time will tell. But one thing’s for sure—both sides are pulling out all the stops to win over key states like Nevada!