Will Trump’s Las Vegas idea to end taxation on tips catch on?
Regulation · 2024-07-06

Will Trump’s Las Vegas idea to end taxation on tips catch on?

When former President Donald Trump held a rally in Las Vegas in mid-June, he pledged to end federal taxation of tips.

“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,” he said. “We’re going to do that right away, first thing in office.”

Such a policy would require an act of Congress. But the idea and the venue where he proposed it had strategic merit. A critical swing state, Nevada is home to more than 350,000 workers in the hospitality industry, including waiters, bartenders and cocktail servers.

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