At a rally just off the Las Vegas strip in Nevada, former President Donald Trump announced a new initiative aimed at service workers, promising to eliminate taxation on tips.
“When I get to office, we are going to not charge taxes on tips,” Trump declared. He emphasized the immediate implementation of this policy, stating, “We’re not going to do it, and we’re going to do that right away, first thing in office, because it’s been a point of contention for years and years and years.”
This proposal marks the first time Trump has targeted the taxation of tips, a significant component of earnings for many in the service industry, who often receive wages below the minimum and depend heavily on tips to make ends meet. Currently, the Internal Revenue Service mandates that these workers report tip-based earnings as taxable income.
However, altering this tax law would necessitate Congressional approval. Such changes could be on the table when lawmakers have the opportunity to overhaul the nation’s tax codes with the expiration of Trump’s 2017 tax laws in 2025, which did not originally address tips.
The strategy appears to be a direct appeal to Nevada’s service sector, still reeling from the economic impacts of the COVID-19 pandemic. Yet, the Las Vegas Culinary Workers Union, a pivotal force in Nevada politics, remains unconvinced. Culinary Union Secretary-Treasurer Ted Pappageorge responded, “Relief is definitely needed for tip earners, but Nevada workers are smart enough to know the difference between real solutions and wild campaign promises from a convicted felon.”
Despite Trump’s outreach, the Culinary Workers Union, representing over 60,000 workers in Las Vegas and Reno, reaffirmed its support for President Biden in the upcoming election. The union recently reviewed its endorsements after withdrawing support from legislators backing a controversial bill affecting hotel room cleaning standards.
***
Ok…I didn’t know that tips were taxed. Well, that makes me hate the government that much more! But here’s the thing, does anyone actually report their tips???
