President Joe Biden will support legislation that would eliminate taxes on tipped wages, the White House said Monday, signaling approval for a policy first introduced by former President Donald Trump and later endorsed by Vice President Kamala Harris.
During a press briefing, White House Press Secretary Karine Jean-Pierre revealed the president's stance. "Absolutely," she said, adding, "The president supports this initiative. He believes in eliminating taxes on tips for service and hospitality workers, alongside raising the minimum wage and ensuring the wealthy don't exploit the system."
Jean-Pierre said the proposal is consistent with Biden's broader economic vision of strengthening the economy by focusing on the needs of working Americans, The Hill reported.
While Biden had not previously addressed this issue publicly, Trump brought it into the spotlight during a June rally in Nevada, a key battleground state with a significant service industry workforce.
Following Trump's remarks, Republican lawmakers quickly introduced a bill to remove taxes on tips. However, critics argue that the proposal could increase the national debt and potentially be exploited by wealthy individuals.
Vice President Harris, who stepped in as the Democratic nominee after Biden chose not to seek re-election, recently voiced her support for the proposal at a Las Vegas rally.
"As president, I will continue to fight for working families, which includes raising the minimum wage and eliminating taxes on tips for service and hospitality workers," she pledged during the event.
A Harris campaign official said that any such policy would require legislative action and suggested that it should include an income cap to prevent abuse.
Trump, however, has criticized Harris for adopting what he says was his idea.
In a post on Truth Social, he said, "The difference is, she won't do it, she just wants it for Political Purposes! 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."
The proposal could significantly increase the federal deficit, according to the Committee for a Responsible Federal Budget, which estimates that the plan could add between $100 billion and $200 billion to the national deficit over the next decade.
In 2022, approximately 2.2 million Americans were employed as wait staff, many of whom rely on tips as a substantial portion of their income, according to data from the Labor Department.
Harris' proposal seeks to provide financial relief for these workers, who are often among the lowest paid in the labor market.
