Liam Conner
Former President Donald Trump promised on Sunday to end taxes on tips for service workers at a rally in the Las Vegas region of Nevada, in a bid to win over voters in the swing state that largely depends on the hospitality industry.
“When I get into office, we will not charge taxes on tips,” Trump said. “We’re not going to do that, and we’re going to do that immediately, right at the beginning of the position, because it’s been a point of contention for years and years and years.”
This is the first time that Trump has made this proposal. Tips are crucial for Americans who work in the service sector, many of whom earn below minimum wage and rely on tips to make a living.
The IRS legally requires workers who earn wages based on tips to report their earnings on taxes, which are then taxed at the same rate as regular income.
Brandon Bell/Getty Images
Changing the law would require approval from Congress, which has not acted before. But in 2025, lawmakers will have the opportunity to rewrite the nation’s tax laws when Trump’s 2017 tax laws expire. Tips were not included in the original legislation.
Trump’s calculated proposal spoke directly to the thousands of service workers in Nevada, who his campaign believes can be convinced to support him because many hospitality workers have faced economic hardship since the COVID-19 pandemic. 19 devastated the tourism industry.
However, the Las Vegas Culinary Workers Union chapter, one of the driving political forces in Nevada politics, was not swayed by Trump’s proposal.
“Relief for tip earners is definitely needed, but Nevada workers are smart enough to know the difference between real solutions and wild campaign promises from a convicted felon,” Culinary Union Secretary-Treasurer Ted Pappageorge wrote. in a statement.
The powerful Culinary Workers Union represents more than 60,000 workers in Las Vegas and Reno and has already supported President Biden in 2020. The group pledged last month to work to re-elect Biden in November, although there have been signs of divisions with local Democrats in last months. In May, the union did not endorse all of the sitting lawmakers who voted for a 2023 resort-backed bill that included ending the daily cleaning requirement for hotel rooms, and the union said it was reevaluating all of its endorsements ahead of the November elections, according to the Nevada Independent.
This was Trump’s third event in Las Vegas this year as he seeks to win Nevada, a battleground state, in November. No Republican presidential candidate has won Nevada since 2004.
At the rally, Trump avoided discussing his recent conviction at the Manhattan criminal trial. This was his first official campaign event since the former president was found guilty on 34 criminal charges of falsifying business records.
Aaron Navarro contributed to this report.
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