No tax on tips: Why politicians love it, and economists don't

Vice President Harris and former President Donald Trump don't agree on much — especially when it comes to economic policy. But they both want to get rid of taxes on tips.

At a campaign rally in Nevada, Harris joined Trump in supporting tax-free tips.

"It is my promise to everyone here, when I am president, we will continue to fight for working families, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers," Harris told a crowd at the University of Nevada in Las Vegas on Saturday.

Trump has been campaigning on the "no tax on tips" policy since June, after a Las Vegas server told him the government was taking too big of a cut from her tipped wages. Trump touted this policy in Milwaukee during the Republican National Convention.

But soon after Harris promised to do away with taxes on tips this weekend, Trump criticized the move as being done for "Political Purposes."

"This was a TRUMP idea - She has no ideas, she can only steal from me," Trump posted on Truth Social. "Remember, Kamala has proposed the LARGEST TAX INCREASE IN HISTORY - It won’t happen."

In response, a Harris campaign official told NPR that the vice president's policy proposal is distinct from Trump's — and she intends to deliver on it.

"As president, she would work with Congress to craft a proposal that comes with an income limit and with strict requirements to prevent hedge fund managers and lawyers from structuring their compensation in ways to try to take advantage of the policy," the official, who isn't authorized by the campaign to speak publicly, said. "Vice President Harris would push for the proposal alongside an increase in the minimum wage."

Regardless of its origin and ownership, the no tax on tips