Vice President Kamala Harris promised to work to eliminate taxes on tips paid to restaurant and other service industry employees, echoing a pledge that her opponent, Republican Donald Trump, has made, and marking a rare instance of political overlap from both sides.
Harris made the announcement at a rally Saturday on the campus of the University of Nevada, Las Vegas, where the economy relies heavily on the hotel, restaurant and entertainment industries. Trump vowed essentially the same thing at his own rally in the city in June — though neither he nor Harris would likely be able to fully do that without actions from Congress.
“It is my promise to everyone here that, when I am president, we will continue our fight for working families of America,” Harris said. “Including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers.”
Trump responded on his social media site a short time later, posting that Harris “just copied my NO TAXES ON TIPS Policy.”
“The difference is, she won’t do it, she just wants it for Political Purposes!,” the former president wrote. “This was a TRUMP idea — She has no ideas, she can only steal from me.”
Harris’ campaign said afterward that as president, she would work with Congress to draft a proposal that includes an income limit and other provisions to keep hedge fund managers and lawyers from structuring their compensation to try to take advantage of the policy. She also would push for the proposal alongside one to increase the federal minimum wage.
Harris and her running mate, Minnesota Gov. Tim Walz, came to Nevada as the final stop of a five battleground-state blitz in which their party has shown new energy after President Biden exited the race and endorsed Harris. On Sunday, the vice president is holding a San Francisco fundraiser that has already raised more than $12 million, her campaign said, with House Speaker Emerita Nancy Pelosi (D-San Francisco) among those set to speak.
There were 12,000-plus people inside the campus basketball arena on Saturday and, before the event started, local law enforcement halted entry to the event because people were becoming ill while waiting outside in 109-degree heat to go through security. About 4,000 people were in line when the entrances were closed.
Walz referenced that during his speech, but turned it into an applause line by telling Nevada, “don’t worry, we’re going to be back a lot.”
As part of the trip, Harris is hoping to build greater support among Latino voters. In 2020, Biden narrowly defeated Trump by 2.4 percentage points in Nevada.
The 60,000-strong Culinary Workers Union announced its endorsement of Harris. About 54% of the union’s members are Latino, 55% women and 60% immigrants. The union also issued a statement supporting Harris’ call for a higher minimum wage and to “ensure that there are no taxes on tips for service and hospitality workers.”
Harris made her promise on eliminating tip taxation as part of a broader appeal to strengthen the nation’s middle class, seizing on a theme that was a centerpiece of Biden’s now-defunct reelection bid.
The vice president also promised to tackle immigration, leaning heavily into the issue as she did the previous night during a rally in Arizona.
Yamat, Superville, Weissert and Boak write for the Associated Press. Weissert and Boak reported from Washington. The AP’s Scott Sonner in Reno, Nev., contributed to this report.