Las Vegas: Trump to Detail Plan for Excluding Tips from Federal Taxes
President Donald Trump will visit Las Vegas on Saturday to outline his proposal for eliminating federal taxes on tips. The city, known for its gambling and hospitality industries, is expected to embrace this move, as it would increase gratuities for tipped workers.
Trump, who made the pledge during his presidential campaign, will deliver a speech at Circa Resort & Casino. The Culinary Union, representing 60,000 hospitality workers in Nevada, supports the tax exemption but believes Trump's plan lacks sufficient scope.
The appearance aims to galvanize supporters and express gratitude. However, it occurs amidst Trump's recent political controversies.
In North Carolina, Trump suggested abolishing FEMA and shifting disaster relief responsibility to affected states. He also criticized California's water policies, linking disaster funding to voter ID requirements and conservation reforms.
Conversely, in Nevada, Trump seeks to celebrate his Republican presidential victory in the state, a feat not accomplished since George W. Bush in 2004.
As a candidate, Trump first proposed the tip tax exemption at a Las Vegas rally in June 2022. Democratic opponent Kamala Harris later adopted a similar proposal.
The U.S. Bureau of Labor Statistics estimates 2.24 million restaurant servers nationwide, who rely heavily on tips for income. In Las Vegas, the 24-hour economy depends on tipped workers, including wait staff, valet parkers, maids, and casino dealers.
Implementing this tax change may face challenges in the short term, requiring Congressional approval.
Ted Pappageorge, Secretary-Treasurer of the Culinary Union, believes Trump's plans should extend beyond tax exemption. He advocates for eliminating the $2.13 sub-minimum wage, prevalent in many states, and ensuring that workers earn enough to support their families.