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Trump Proposes Ending Taxes on Tips at Nevada Rally

Former President Donald Trump pledged to end taxation on tips for service workers during a rally near the Las Vegas Strip on Sunday.

This proposal aims to win over voters in Nevada, a state heavily reliant on the hospitality industry.

Proposal Details and Impact

Speaking to a large crowd, Trump stated,

“When I get to office, we are going to not charge taxes on tips. 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 is the first time Trump has made this proposal, highlighting the significance of tips for many Americans working in the service industry who often earn below minimum wage.

Currently, the Internal Revenue Service requires workers who earn tips to report them as taxable income. Changing this law would require congressional approval, something that has not happened in the past.

However, in 2025, lawmakers will have an opportunity to rewrite the country’s tax laws when Trump’s 2017 tax reforms are set to expire.

Political Context and Union Response

Trump’s proposal is strategically aimed at Nevada’s service workers, many of whom have faced economic difficulties since the COVID-19 pandemic.

However, the powerful Las Vegas Culinary Workers Union, which represents over 60,000 workers in Las Vegas and Reno, was not swayed by Trump’s pitch.

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.”

The Culinary Workers Union has already backed President Biden for the 2020 election and pledged last month to support his re-election. Despite recent signs of splits with local Democrats, the union remains a significant political force in Nevada.

Campaign Strategy

This rally marked Trump’s third event in Las Vegas this year, as he seeks to secure Nevada, a crucial battleground state, in the upcoming election. No Republican presidential candidate has won Nevada since 2004.

During the rally, Trump avoided discussing his recent conviction in the Manhattan criminal trial, focusing instead on his campaign promises.

With information from CBS News

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