Politics

US Presidential Elections: A Vote Also Decided by “Tips”?

Lower taxes on tips. Kamala Harris is promising it with less than 100 days to go until the US presidential elections.The Democratic candidate has in fact focused on one of the issues that are closest to the hearts of the very normal people of America: the tips. While in Europe it may seem like a secondary issue, in States tips are a blessing and a curse for anyone who goes out to eat or drink, even a coffee. In fact, taxes and a tip must always be added to the final price of the drink. However, over the years, it has gone from being a way to show appreciation for the service received or recognition for the work (often underpaid) of waiters and workers in the establishments, to a real tax. It is no coincidence that cash is no longer left (in many places, special signs prohibit the so-called type in cash), but with a credit or debit card. As if that were not enough, however, sometimes it is added to the total amount on which taxes are calculated. The result is a final bill that can soar out of all proportion.

Hence the slogan launched by Kamala Harris, which certainly did not go unnoticed: there CNNin an article on the home page of its website, reported the news of the Democratic proposal, but remembering how it was part of Donald Trump’s electoral program. According to the broadcaster, this is a way to increase consensus, especially among workers in the food service industry. The issue was raised at a recent rally in Las Vegas, Nevada, attended by a large representation of the Food Service Workers Union. “I promise you that when I am president, we will continue our fight for America’s working families, including raising the minimum wage, and eliminating taxes on tips for service and hospitality by employees,” Harris said. The problem is that almost identical words were uttered by her opponent, the Republican candidate, at an identical rally in the same location, just last June.

Donald Trump did not miss the opportunity to accuse Harris of copying him. “Kamala Harris, lto whose “honeymoon” (with Democratic voters, Editor’s note) it’s overto and it’s starting to suffer the blow of the pollshe simply copied my NO TAXES ON TIPS Policy,” the tycoon wrote in a post on his social media Truth. “The difference is that she doesn’t really want it,” Trump added, “but she says it purely for political purposes. This is Trump’s idea – also because he has no ideas, she can only steal them from me. Remember, Kamala proposed the largest tax increase in history – It’s not going to happen. Make America Great Again!!!”, concluded the former White House chief.

They both certainly touched a raw nerve.. To give a concrete example, The “recommended” tip always appears on the receipt at the end of dinner or happy hour, which ranges from a minimum of 18% to 20%-22% or, in some cases, even 25%. For an average bill for 4 people, with only one course each, you spend an average of 100 dollars (not in fine restaurants). This means that, if you wanted to opt for an average “rounding”, you would arrive at 120 dollars, to which you would add at least 12/15% of taxes, between local and non-local. Translated into numbers, this means paying no less than 138 dollars. Meanwhile, the election campaign is getting into full swing, as confirmed by the statements of TedPappageorge, secretary and treasurer of the Culinary Union Local 226 of Nevada, who expressed his support for Harris: “Change is certainly needed for the recipients of tips, Nevada workers are smart enough to know the difference between real solutions and wild campaign promises coming from a convicted felon.”

Regardless of the endorsementif Kamala Harris’s is the first concrete proposal since she entered the field a month ago, Donald Trump in the meantime has dedicated space to foreign policy, addressing directly the member countries of NATO and the European Union. The reason is well known: the US has long been asking the Allies to commit more economically, reaching at least 2% of GDP in investments. A goal that, according to the outgoing Secretary General of NATO, Jens Stoltemberg, is already a reality for 23 out of 32 countries (in 2021 there were only 6). The war in Ukraine and the crisis in the Middle East have certainly had an impact, but the fear of a US withdrawal from the Alliance has pushed governments to increase the defense budget. Today the most recurring question among analysts is whether, with Trump’s return to the White House, the United States could really decide to abandon NATO (and Europe), focusing on the Indo-Pacific side, where at the moment. There are those, like Foreign Policy, who have already expressly supported the tycoon’s line, (Trump isReight on NATO Spendingheadlined in March). But even the non-compliant Wall Street Journal has already gone so far as to argue that Trump could give the Alliance a new lease of life. This is the opinion of commentator Mark A.Thiessen, who, in the columns of the New York daily newspaper, does not explain how Trump could benefit NATO (How Trump can make NATO Great Again), but it also supports the hypothesis that many states could exceed the 2% threshold, further increasing military spending up to 3% or 4%. What a tip percentage!