Former President Donald Trump promised to end taxes on tip wages during a rally in Nevada, a pledge that could shake things up in the service-heavy battleground state.
“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,” he said in Las Vegas. “When I get into office, we are not going to charge taxes on tips — on people making tips.”
Nevada’s economy is driven by tourism, especially to the gambling and entertainment destinations of Las Vegas and Reno. Service industry unions such as the Service Employees International Union have a major presence in the state and rallied support against Trump ahead of his appearance.
President Joe Biden won Nevada by a little more than 30,000 votes in 2020, but Trump is ahead by about five points in the RealClearPolitics voting average for this year’s election.
“We’re not going to [charge taxes on tipped wages], and we’re going to do that right away, first thing in office,” Trump promised. “It has 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.”
Earlier in the rally, Trump said the Democratic Party runs on open borders and high tax rates, saying they know they “can’t get elected like that, so they make up stories,” referencing, in particular, the suckers and losers story that Biden sometimes mentions on the campaign trail.
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He then made his own promise to cut taxes on Nevada’s service workers.
“Those people that have jobs in restaurants, whatever the job may be, a tipping job, we’re not going after them for taxes anymore,” Trump said. “I announced that for the first time, first time I’ve brought it up, first time anyone has brought it up. I think it has never been brought up before, and I also think it’s very appropriate.”
