Trump Promises to Eliminate Taxes on Tips; Las Vegas Service Workers Dream of Gold Plated Toothpicks

Trump Promises to Eliminate Taxes on Tips; Las Vegas Service Workers Dream of Gold Plated Toothpicks

3 minute read
Published: 6/10/2024

In a grand gesture reminiscent of a dinner theater performance, former President Donald Trump recently pledged to eliminate taxes on tips for service workers if he is elected in November. This proposal aims to benefit the country's most tipped employees—waiters, bartenders, valets, and any service worker that relies on gratuities to make a living. Considering most of these workers are conveniently paid below minimum wage, it’s like offering suntan lotion to a sunburnt Nevada desert.

Currently, the Internal Revenue Service (IRS) demands workers who earn tips report their earnings and get taxed with the same enthusiasm as Jeff Bezos would when eyeing another tax haven. This means service workers often find themselves taxed on every dollar they make in tips, right alongside their regular income. Trump’s promise would flip that script, offering a refreshing exemption from Uncle Sam’s appetite.

Of course, eliminating taxes on tip income isn’t as straightforward as writing a new line on the 1040 form. This plan would require approval from Congress, which might be as attainable as getting a room upgrade on New Year's Eve in Las Vegas. But no worries, because if there’s one thing Trump’s career has shown us, it’s persistence—coupled with a dash of creative accounting.

Trump’s latest pitch largely targets Nevada, a crucial battleground state where hospitality reigns supreme. With this proposal, Trump seems to be betting on the allure of tax-free tips to win over service workers who are the backbone of Nevada’s economy. In his third act of the year in Vegas, Trump hopes to bring back the magic and maybe finally turn the tables by winning Nevada in November. Historically speaking, no Republican presidential candidate has been able to cash in on Nevada's electoral chips since 2004, but if politics teaches us anything, it’s to never say never.

Interestingly, during this rally of promises, Trump skillfully avoided discussing his recent conviction in the Manhattan criminal trial. It was almost as if the conviction were an unwelcome hand trying to interrupt a magician’s classic disappearing act.

Meanwhile, in a spectacularly predictable twist, the Culinary Union, representing a bustling 60,000 hospitality workers, issued a statement that was less than flattering. They referred to Trump's proposal as yet another wild campaign promise from a man they diplomatically referred to as a convicted felon. The Culinary Workers Union, which has already hitched its wagon to President Biden for the impending election, has recently taken some shots at local Democrats too. After all, in the grand arena of politics, culinary unions seem to be just like chefs: they aren’t afraid to stir the pot.

It seems Trump's grand tip-tax-busting plan has left both sides of the aisle, and perhaps even the service workers themselves, with much to chew over. After all, if Trump’s proposal ever comes to fruition, Las Vegas service workers might not start dreaming of gold-plated toothpicks, but you can bet that they’ll be just as eager to escape from the IRS’s clutches as he claims to be.

Until then, it’s a tailspin of political promises and criticism, with Nevada serving as the main stage. Whether this tax dream becomes a legislative reality or merely remains an intriguing sideshow remains to be seen. One thing's for sure: as long as there's a stage, Trump will always find a new act to entertain the crowd.

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