Biden Supports Trump’s Proposal Regarding Tipped Workers

You might need to sit down for this one, folks—it seems President Biden is actually adopting a Trump proposal, and no, this isn’t an early April Fool’s joke. Here’s the scoop: Biden is backing the idea to eliminate taxes on tips, a policy his administration previously overlooked but which Trump championed as a win for service workers. This bipartisan agreement could mean more money in the pockets of America’s hardworking waiters, bartenders, and other tipped employees. If you’ve ever felt like politicians only care about their own agendas, this rare moment of unity is worth your attention.

Bipartisan Agreement on Tax Policy

President Joe Biden is now supporting the plan to abolish taxes on tips, a proposal initially put forth by former President Donald Trump during a Nevada rally on June 9. This plan aims to provide financial relief to those in the service and hospitality industry by allowing them to retain 100% of their hard-earned tips.

“Look, this is something that the president supports,” White House Press Secretary Karine Jean-Pierre confirmed, emphasizing that Biden supports eliminating taxes on tips while also aiming to raise the minimum wage and ensure that the wealthy don’t game the system.

Harris Joins the Bandwagon

Interestingly, Vice President Kamala Harris also voiced her support for the initiative, albeit much later than Trump. Harris echoed the call to abolish the tax during a rally in Las Vegas, aligning her stance with Biden and, surprisingly, with Trump. Harris promised to end taxes on tips while also fighting to raise the minimum wage.

“When I am president, we will continue our fight for working families of America, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers,” Harris stated during her Nevada rally. Source: Bloomberg News

The Political Chess Game

Of course, Trump didn’t let this go unnoticed. The former president took to Truth Social to bash Harris’s apparent “copycat” move. “Kamala has no imagination, whatsoever, as shown by the fact that she played ‘COPYCAT’ with, NO TAXES ON TIPS!” Trump wrote.

The Economics Behind the Proposal

Economists have expressed skepticism regarding the feasibility and costs associated with eliminating taxes on tips. The tipping workforce contributes approximately $38 billion in taxes. Achieving such a change in the tax code will require an act of Congress, and some experts believe the proposal is more campaign rhetoric than a viable economic plan.

“It’s a wild campaign promise,” said one political analyst, who noted the complexities involved in modifying the tax code.

A Distraction or a Real Policy Shift?

Unsurprisingly, reporters questioned why Biden and Harris hadn’t pushed for this change earlier in their term. Jean-Pierre deflected these queries by touting the administration’s record of passing historic legislation to benefit middle-class workers.

Context within Broader Tax Policy

This move contrasts sharply with Biden’s broader fiscal aims for the year. His fiscal year 2024 budget proposal seeks to impose new taxes on unearned income, reverse many of the changes made by the Tax Cuts and Jobs Act of 2017, and address inequities that benefit the wealthy. These plans are set against the backdrop of Trump’s initial proposal that made significant cuts to corporate and personal income tax rates, favoring the wealthy and increasing the federal deficit.

In Summary

Though it might be shocking to see Biden aligning with a Trump proposal, it’s worth noting that even a broken clock is right twice a day. If this policy eradicates the tax on tips, it could mean significant financial relief for millions of service industry workers. Whether this plan survives the political gauntlet is another matter altogether. Let’s see if Washington can finally stop playing games and deliver some real benefits for the everyday American.