The White House announced Monday that President Biden will sign a bill to eliminate taxes on tipped wages, appearing to nod to a policy first proposed by former President Trump.
White House Press Secretary Karine Jean-Pierre announced the Biden administration’s position at a press conference.
“This is something the president supports,” she said. “He supports eliminating the tip tax for service and hospitality workers, while also raising the minimum wage and stopping the wealthy from gaming the system.”
Trump promises to end tip taxes on hospitality workers at Las Vegas rally
The White House announced that President Biden has contracted COVID-19. (Biden speaks at a rally in Virginia)
Vice President Kamala Harris has taken a similar stance on the tip tax, pledging Saturday to support policies that benefit working families.
“I promise all of you here that if I’m president, I’ll continue to fight for working American families, including raising the minimum wage and eliminating the tip tax for service and hospitality workers,” she said at a campaign rally in Las Vegas.
President Trump first proposed eliminating the tip tax for restaurant and hospitality workers in June.
Republicans slam Biden administration over plan to crack down on waiter tips
Left: Vice President Kamala Harris. Right: Former President Donald Trump. (Andrew Harnick/Getty Images/Brandon Bell/Getty Images)
“I’m the first person to say this, but hotel workers and people who get tipped are going to be very happy, because when I’m in office, I’m not going to tax tips or people who get tipped. This has been a contentious issue for years, but you provide great service and you take care of people, and I think this is really going to be a well-deserved return,” Trump said at a rally in Las Vegas in June.
He criticized Harris over the weekend, accusing her of trying to copy his proposals.
“Kamala has no imagination whatsoever. The fact she ‘mimicked’ not to tax tips shows it!,” Trump wrote on Truth Social. “The difference is she won’t do it. She only wants it for political purposes!,” Trump posted on Truth Social. “This was Trump’s idea. She has no ideas, only steals from me. Remember Kamala proposed the biggest tax increase in history and it will not get done.”
House Republicans introduced a bill in June to repeal the tip tax.
An unknown male customer at a coffee shop puts cash into the tip box. (iStock)
“As the cost of living continues to rise, the hardworking men and women who work in the service industry, many of whom may work second jobs to make ends meet, should be able to keep every penny they earn in tips,” Rep. Matt Gaetz (R-Fla.) wrote on social media at the time.
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The Biden administration last year introduced a voluntary tip reporting system for industry workers that aims to streamline tax compliance regarding tips.
At the time, the plan was criticized by tax experts as a crackdown on “waitress tips” after the IRS hired 87,000 new employees under the Biden administration, Fox News Digital reported last year.
