August 13, 2024
Obviously that no tax on tips policy is popular.
But the question is – can either of them actually do it if he or she becomes president?
The short answer is no.
Regardless of whether Vice President Harris becomes President or if former President Trump becomes president again what they’re promising cannot happen with just the presidential pen. That’s not an opinion, that’s a fact. No president has the power to change the tax code by himself or herself.
Why? Because we have a little thing called the United States constitution which explicitly gives congress the sole power to tax. Article 1 Section 8 Clause 1 says “the congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defence and general welfare of the United States….”
So if neither Trump nor Harris can get rid of taxes on tips– why are they talking about it that way on the campaign trail? Because they are both running for president and they’re trying to earn your vote.
Now – I’m not saying no tax on tips won’t happen. That’s not what I’m saying at all. But what I’m saying is, in order for no tax on tips to become a reality – both the House and the Senate will need to pass a bill that removes taxes on tips in the actual tax code and then whoever becomes the president signs it into law.
Look – campaign promises are not new – we have had them since the formation of the United States. The men and women who run for president make promises and then once they’re elected – it’s their job to fulfil those promises by using the tools of the office of the president to convince – and in some cases, strong arm congress into passing a law that supports their promises.
Now – what makes this no tax on tips promise more likely to happen than most other campaign promises – is now both Republicans and Democrats are supporting it. So if for example Trump becomes president it’ll be hard for Democrats to vote against a no tax on tips bill and if Harris becomes president it’ll be hard for Republicans to vote against a no tax on tips bill.
