VP Kamala Harris Cast Tie-Breaking Vote to Let IRS Track Workers’ Tips so They Can Be Taxed

Vice President Kamala Harris — who on Saturday copied a campaign promise first announced by former President Donald Trump to eliminate taxes on tips — voted in 2022 to pass legislation that allowed the IRS to track down workers’ tips so that they could be taxed.

On August 7, 2022, Harris cast the tie-breaking vote to pass the Inflation Reduction Act that provided $80 billion in additional funding to the Internal Revenue Service (IRS), which then got to work cracking down on the service industry’s reporting of tips so that they could be taxed.

“Two years ago today, I proudly cast the tie-breaking vote to pass our Inflation Reduction Act,” Harris’s Facebook account reminded the public on Wednesday, sharing a video of the vice president voting to pass the legislation.

In February 2023, the IRS released a proposed revenue procedure known as the Service Industry Tip Compliance Agreement (SITCA) program.

The agency described SITCA as “a voluntary tip reporting program between the IRS and employers in various service industries” that would include “monitoring of employer compliance based on actual annual tip revenue and charge tip data from an employer’s point-of-sale system, and allowance for adjustments in tipping practices from year to year.”

“There’s no reason they’d be issuing guidance on how to crack down on this if it was only going to end up being voluntary,” Americans for Tax Reform’s Mike Palicz told Fox News at the time. “Ultimately, the goal is to go and grab as much revenue as possible and from whoever they can.”

“They told us they’re not going to be coming after people earning $400,000 or less,” Palicz added. “Well, here’s a new IRS rule that’s focused on bringing in tips from waitresses.”

Palicz also took to X to express his dismay, writing, “Those 87,000 new IRS agents that you were promised would only target the rich… They’re coming after waitresses’ tips now.”

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