Now the White House says Biden backs no tax on tips after Kamala Harris stole the idea from Trump... and after the IRS cracked down

President Joe Biden supports the idea of abolishing taxes on tips for service workers, the White House said on Monday, two days after Kamala Harris was accused of stealing the campaign promise from Donald Trump and months after his own administration was criticized for cracking down on waiting staff and others failing to declare gratuities.

The policy is wildly popular with voters and could help decide the outcome of the election in key battlegrounds such as Nevada.

'Absolutely,' said White House Press Secretary Karine Jean-Pierre, when she was asked whether Biden would sign legislation ending tax on tips.

'This is something that the president supports. He supports eliminating taxes on tips for service and hospitality workers while also raising minimum wage and preventing the wealthy from from gaming the system.'

The issue is now the subject of a tug-of-war between election candidates.

Trump has campaigned on the promise since June, when he said a server in Nevada told him how the government was taking too big a cut of her tips. 

Then on Saturday, a day after the Culinary Workers Union endorsed her, Harris promised she would do the same if elected. 

'It is my promise to everyone here, when I am president, we will continue to fight for working families, including to raise the minimum wage and eliminate taxes on tips for service and hospitality workers,' she said.

Trump immediately accused her of stealing the policy. 

'The difference is, she won’t do it, she just wants it for Political Purposes!' he posted on his Truth Social website, using his idiosyncratic style of capitalization.'

'This was a TRUMP idea - She has no ideas, she can only steal from me.'

The proposal has proved popular with voters. And it is now one of the few areas where the two candidates agree. 

Harris's proposal could leading to federal funding black hole of up to $200 billion over 10 years, according to the nonpartisan Committee for a Responsible Federal Budget. 

But Jean-Pierre struggled to explain why it was only now, after three-and-a-half years, that the administration was considering the issue. 

She said she did not have a timeline to offer on the thinking behind the announcement. 

'There are things that the president and this vice president has done over the three and a half years that has helped hard working people that Republicans in Congress have opposed,' she said. 

Tips are classed as taxable income and the W-2 form includes a box for 'wages, tips and other compensation. However, the I.R.S. has long said that it has been difficult to get workers and employers to submit accurate data.

Last year it proposed a new mechanism to improve compliance. 

It would allow employers to sign up to a voluntary system that uses their 'point of sale' computer systems to collect tip data. Employers would then submit an annual report, which would reduce the chances of staff or businesses facing a dreaded audit.

In some quarters, the proposals were seen as a crackdown.

'The proposed SITCA program is designed to take advantage of advancements in point-of-sale, time and attendance systems, and electronic payment settlement methods to improve tip reporting compliance,' the IRS said when it announced the proposal. 

'The proposed program would also decrease taxpayer and IRS administrative burdens and provide more transparency and certainty to taxpayers.'