Trump's Tax on Tips Proposal: A Boon for Las Vegas Hospitality Workers?

President Donald Trump is set to visit Las Vegas on Saturday, January 25, 2025, to discuss his proposal to exclude tips from federal taxes. This policy, if implemented, could have significant implications for the Las Vegas hospitality industry and its workforce. With Nevada having the highest concentration of tipped workers in the nation, the potential impact of this proposal on the state's economy is substantial.

The U.S. Bureau of Labor Statistics estimates that there are approximately 2.24 million restaurant servers across the country, with tips making up a large percentage of their income. In Las Vegas, the 24-hour economy is fueled by tipped workers, with Nevada having about 25.8 waiters and waitresses alone per 1,000 jobs. If the federal government were to exclude tips from federal taxes, as proposed by President Trump, these workers would see an increase in their take-home pay.

However, it is essential to note that not paying federal taxes on tips will likely be difficult to put in place in the short term and would require an act of Congress. Additionally, the Culinary Union, which represents about 60,000 hospitality workers across Nevada, supports eliminating taxes on tips but argues that Trump's proposals do not go far enough. The union believes that eliminating taxes on tips and ending the $2.13 sub-minimum wage for tipped workers is critical to ensuring that one job is enough for workers to support their families.



In conclusion, while the proposed tax policy on tips could potentially increase take-home pay for Las Vegas hospitality workers, the implementation of such a policy would require legislative action and may not address all the concerns of the affected workers and their unions. The full economic impact of this policy change would depend on the specific details of the implementation and any accompanying measures, such as the elimination of the sub-minimum wage for tipped workers.