Harris pushes to eliminate taxes on tips but with some conditions
Photo: Kamala Harris (Getty Images)
The team of the current US Vice President and Democratic Party candidate Kamala Harris wants to revise the taxation system for the money that service industry workers receive as tips, reports The Washington Post.
Three anonymous sources familiar with this proposal in Harris's campaign stated that the plan is to exempt tips from federal income tax. However, the tipped income would still be subject to payroll tax since it funds Social Security and Medicare. Moreover, only service and hospitality workers who make $75,000 or less annually would be exempted from the taxation.
Harris's team might have borrowed this idea from the opponent, Donald Trump, who made a similar proposal in early June. However, at that time, the Republican candidate did not announce any detailed plan and limited himself to vague statements.
The Republican candidate's team mocked Harris's proposed idea, calling her a "Copy Cat Kamala" and claiming that she "stole President Trump’s No Tax on Tips proposal."
Interviewed economists note that both candidates tried to use this idea with an apparently populist purpose. In their opinion, such proposals would lead to numerous issues with the taxation of these funds, problems with declaring such income, and a lack of clear oversight from the U.S. Internal Revenue Service (IRS).
Harris-Trump debates
After the current Vice President entered the election campaign, both candidates for US President agreed to hold a series of debates. However, Trump and Harris disagreed on the date and the channel that would broadcast the debates.
Later, the Democratic candidate agreed to debate Trump on September 10 on ABC News. However, Trump insisted on holding the debates on September 4 on Fox News, known for its support of the former president, and on September 25 on NBC News.
Harris rejected these conditions but promised to hold a second round of debates with Trump in October, provided he participates in the debate on September 10.
Later, Harris's campaign spokesperson, Michael Tyler, confirmed that the presidential candidates would hold two rounds of debates, and the vice-presidential candidates, Tim Walz and J.D. Vance, would hold their debates on October 1 on CBS News.
