Complementing Sunday 9 June’s sweltering heat in Las Vegas, Donald Trump dropped some “hot” news at his campaign rally, where temperatures climbed to 100F (38C°).
No Tax on Tips?
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Looking to win over voters in Nevada, former president Donald Trump pledged to eliminate taxes charged on tips for all service workers – IF he is elected as the new US President in November.
Nevada = Red or Blue?
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According to polls, the swing state of Nevada is leaning towards Trump for the November 5 elections. Advisers and strategists say Trump’s tax-free tip promise is sure to move the needle toward the Republican party even more.
Location, Location, Location
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Trump’s promise to service industry workers in Nevada was no coincidence, as over a quarter of the Las Vegas workforce consists of leisure- and hospitality employment.
Nevada’s tourism and hospitality sector was hit especially hard during the Covid-19 pandemic, which is why Trump’s campaign sources are so optimistic about this new tax reveal.
No Specifics Given
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Although no further detailed information was given, spokeswoman Karoline Leavitt claimed that “President Trump will ask Congress to eliminate taxes on tips,” and that “Joe Biden has aggressively stepped up the IRS going after tip workers.”
Trump Inching Forward
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As per a FOX News survey conducted after Trump’s guilty verdict, Biden is trailing behind the Republican party by five percentage points. This brings it more or less in line with the poll statistics drawn up by the poll-tracking website FiveThirtyEight.
No Panic for Hispanics
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Latino voters make up a substantial chunk of the electorate in a state like Nevada. And according to recent polls, there has been quite a shift in support from Hispanic voters (who have traditionally ticked the Democratic box) towards Trump.
Good News for Servicing Staff
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Asked about this “tip tax” promise, Trump stated that: “This is the first time I’ve said this and for those hotel workers and people that get tips, you’re going to be very happy, because when I get to office we are going to not charge taxes on tips, people making tips…”.
Thank You for Your Service
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Trump emphasized his admiration for service workers by saying: “It’s been a point of contention for years and years and years, and you do a great job of service, you take care of people, and I think it’s going to be something that really is deserved,”.
OK, but When?
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Assuring the crowd that he was serious about his promise, Trump stated that he would “do that right away, first thing in office”. He also said in prepared remarks that, for this change to happen, he would seek congressional approval.
Some Are Doubtful
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But not all who heard about the new tax change were hopeful. The Culinary Workers Union, which represents about 60,000 hospitality workers and usually aligns with Democrats, pushed back on this promise last Sunday.
Promises, Promises?
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Ted Pappageorge, secretary-treasurer for the Culinary Workers Union, issued the following statement: “For decades, the Culinary Union has fought for tipped workers’ rights and against unfair taxation.”
“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.”
Scooped by Trump?
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It would seem that Donald Trump is not the only Republican planning this new tax change. Sam Brown – an army veteran who sealed the Republican nomination on Tuesday – stated that he was also planning on revealing the same proposal during his election campaign.
Brown’s Plan
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Brown said in an interview with NBC News that: “That was actually a policy idea that my team had sort of developed and we were planning to roll out in the general election”.
“So in some sense, President Trump scooped us and beat us to it.”
No Hard Feelings
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However, Brown made it clear that they are fully supportive of Trump. “But that’s something we’re fully behind. Those tips are not guaranteed income, people work hard for it.”
Further asked about the new “tip tax” proposal, Brown stated: “In states like this where we have a strong service-based economy, it makes a lot of sense”.
Backing Brown?
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Trump complimented Brown at the rally on Sunday and endorsed him later in a post on Truth Social. This comes after there has been mounting pressure on Trump to support Brown ahead of the GOP primary on Tuesday.
Approval From Trump
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But it would seem that Brown, who suffered severe burns in a roadside bomb in Afghanistan during his military service, has no need for concern when it comes to the former president’s support.
Trump was quoted as saying: “Sam has already proven his Love for our Country, being horrifically wounded, and making the Comeback of a Lifetime,” and “Sam Brown has my Complete and Total Endorsement – HE WILL NEVER LET YOU DOWN!”
What About Biden?
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In contrast, the Biden campaign is focused on raising the tipped minimum wage to be equal to the regular minimum wage and increasing minimum wages overall. But this means that all income earned through an hourly wage would be taxed.
No Comment
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In 2023, a program was announced by the IRS to encourage voluntary compliance with regard to tip reporting – something that was criticized by Republicans. No response was given by the Biden campaign regarding the new “tip tax” proposal.
President Trump in 2025?
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Because much of the previous president’s tax legislation expires next year, Trump would have the opportunity to oversee congressional lawmakers rewrite the tax policy if he is elected in November.
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