Harris vows to end taxes on tipped income, echoing Trump

Vice President Kamala Harris pledged to remove taxes on tipped income for service industry workers if elected president, a proposal that mirrors one made by her 2024 rival, former president Donald Trump.

Harris announced her plan at a rally in Las Vegas, a key battleground state with a significant proportion of food service and hospitality workers. She highlighted that eliminating these taxes would support working families and boost the minimum wage.

Trump, who also advocates for ending taxes on tips, criticised Harris on his Truth Social network, accusing her of copying his policy for political purposes.

Harris’ campaign noted that implementing this policy would require legislative action and collaboration with Congress. The plan would include safeguards to ensure that it benefits only eligible workers without affecting tax credits or Social Security and Medicare benefits.

The proposal aims to address economic concerns and draw support from the service industry, which is vital in states like Nevada.

Harris is set to roll out more elements of her economic agenda in the coming weeks, focusing on reducing costs for American households amid high inflation and economic challenges.

Attribution: Bloomberg