Vice President Kamala Harris proposed an end to taxes on tips and to increase the federal minimum wage, a move that could cost up to $200 billion over the next 10 years, according to a budget watchdog estimate.
Harris vowed during a rally in Las Vegas on Saturday night to make income from tips exempt from federal taxes and raise the minimum wage.
The Committee for a Responsible Federal Budget released an analysis Monday determining that making income from tips exempt from federal taxes and increasing the federal minimum wage would add $100 billion to $200 billion to the country's deficit in 10 years.
Former President Donald Trump has also vowed to end taxes on tips but did not pledge to raise the federal minimum wage. The CRFB estimated that Trump's proposal would reduce federal revenues from $150 billion to $250 billion over 10 years.
A Harris campaign official told the CRFB that the vice president, if elected, "Based on communications with the Harris campaign, tips would be exempt from the income tax but remain subject to the payroll tax under the proposal."