In a surprising move, Kamala Harris has endorsed Donald Trump’s proposal to eliminate federal taxes on tips, a policy that has taken center stage in Nevada’s crucial battleground state. This proposal, which targets the state’s large immigrant and working-class hospitality sector, has significant implications for both campaigns as they vie for the support of Nevada’s 350,000 service industry workers.
The Political Context
Nevada’s hospitality workers, many of whom are Latino and part of the Culinary Union, have become a key focus for both parties. Trump’s initial announcement of the tax proposal in June caught Democrats off guard, leading them to quickly adjust their messaging. Harris’s endorsement of the policy marks a rare alignment with Trump, highlighting the importance of this issue in a state where tipping is a significant part of workers’ income.
Economic and Political Reactions
While the proposal has been criticized by economists across the political spectrum for being costly and ill-advised—potentially costing between $100 billion and $250 billion over a decade—it has resonated differently in Nevada. The state’s service industry workers, who often pay taxes on their tips due to higher earnings, see this policy as a direct benefit.
Democratic leaders in Nevada, including Rep. Steven Horsford and Sen. Catherine Cortez Masto, have embraced the proposal, reflecting its importance to the state’s voters. However, Republicans have accused Harris of merely copying Trump’s policy to win over service workers, with Nevada GOP strategist Jeremy Hughes stating, “It’s a win for service industry workers, but it comes at the expense of Kamala looking foolish.”
The Impact on the Election
The fight for Nevada’s service industry workers is crucial in a state with the highest concentration of tipped workers in the country. Harris’s support of the no-tax policy could bolster her standing among Latino voters, a group where she has seen fluctuating support. According to a recent Somos PAC poll, Harris is polling at 55 percent among Latino voters in battleground states, a figure lower than Biden’s 61 percent in 2020.
With both Harris and Trump backing the policy, the Culinary Union, known for its powerful voter mobilization efforts, now has a compelling issue to rally its members around. As the election approaches, the no-tax-on-tips policy is set to be a pivotal issue in Nevada, with both campaigns using it to sway this critical voting bloc.
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