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title: Ending Taxes on Tips Is Controversial Even Though Trump and Harris Both Want It | TIME
description: Vice President Kamala Harris and former President Donald Trump have both endorsed a policy to eliminate federal taxes on tips, a rare instance of agreement between the two campaigns as they aim to sway a critical bloc of voters.
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* Politics

# Ending Taxes on Tips Is Controversial Even Though Trump and Harris Both Want It

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<!-- video src="https://cdn.jwplayer.com/manifests/CO9TjW7t.m3u8" -->
## Video: Ending Taxes on Tips Is Controversial Even Though Trump and Harris Both Want It

[Watch (HLS stream): Ending Taxes on Tips Is Controversial Even Though Trump and Harris Both Want It](https://cdn.jwplayer.com/manifests/CO9TjW7t.m3u8) (1:36)

![Ending Taxes on Tips Is Controversial Even Though Trump and Harris Both Want It](https://cdn.jwplayer.com/v2/media/CO9TjW7t/poster.jpg?width=720)

_Published 2024-08-13. Vice President Kamala Harris and former President Donald Trump have both endorsed a policy to eliminate federal taxes on tips, a rare instance of agreement between the two campaigns as they aim to sway a critical bloc of voters._


---

Aug 13, 2024 5:20 PM UTC

---

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### Vice President Kamala Harris Talks About Biden At First Public Appearance Since Endorsement

[Both Presidents Bush Will Not Endorse Trump ](/video/7LalRH2D/)

### Both Presidents Bush Will Not Endorse Trump

---


## Transcript

No tax on tips. Do we like that? And eliminate taxes on tips for service and hospitality workers. In the United States, the federal income tax taxes all income from whatever source derived. That's how the code reads. And the system and the courts have wrestled for a long time with what counts as income. Tips have always counted as income. Of course, Congress could change the law and provide an exception for tips, and they could do it in a way that is somehow tied to the rest of your income. Here's the difficulty. To start with, if we have an exclusion for tips, then we have to distinguish tips from other forms of compensation, and that's extremely difficult to do.

And so we would need rules to try to distinguish it. It's possible to draft rules. Would it be a mess? Yes. Presidential campaigns are not great for addressing these central problems because, of course, The answer has to be painful. Either you cut spending or you raise taxes, neither of which is popular. We've taxed tips for a long time. Congress has known all about this. They've not chosen to change it. And one possibility is no matter who wins, they don't change it. But I guess we'll find out.

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