Donald Trump wants to stop taxing tips at Nevada rally.

Former President Donald Trump made a bold promise to service workers during a rally in Las Vegas, Nevada over the weekend. He pledged to eliminate taxation on tips, a move aimed at gaining support from voters in a state heavily reliant on the hospitality industry.

During his speech, Trump emphasized the significance of tips for workers in the service sector, many of whom rely on gratuities to supplement their income, especially those earning below the minimum wage.

Currently, the Internal Revenue Service mandates that employees who earn tips must report them as part of their income and are taxed accordingly. Trump’s proposal to waive this taxation on tips would require Congressional approval, providing workers with substantial financial relief.

While lawmakers have not previously taken action on this issue, an opportunity to address it will arise in 2025 when Trump’s 2017 tax laws come up for renewal. Tips were not initially included in the legislation, leaving room for potential amendments.

Trump’s strategic announcement was crafted to resonate with Nevada’s service workers, who have faced economic hardships due to the impact of the COVID-19 pandemic on the tourism industry. Despite this effort, the influential Culinary Workers Union remained unconvinced by Trump’s proposal.

In response, the Culinary Workers Union Secretary-Treasurer Ted Pappageorge expressed skepticism, stating that while relief for tip earners is necessary, Nevada’s workers can discern genuine solutions from campaign rhetoric. The union, representing over 60,000 members in Las Vegas and Reno, has historically supported President Biden and intends to continue backing him in the upcoming elections.

Trump’s rally in Las Vegas marked his third appearance in the state this year as he aims to secure Nevada’s critical electoral votes. Historically, Republicans have struggled to carry Nevada, with the last victory dating back to 2004. Despite his legal troubles following a recent conviction in a Manhattan trial, Trump focused on his policy agenda and avoided addressing his criminal charges during the event.

As the political landscape in Nevada continues to evolve, with shifts in endorsements and alliances, the race for support among key voting blocs, including service workers and union members, intensifies. Trump’s bold proposal on tips taxation may resonate with many workers, highlighting his efforts to appeal to diverse segments of the electorate.

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