Donald Trump’s proposal to eliminate the federal tax on tips, introduced during a rally in June, has caught many by surprise, especially among Nevada’s Democrats and labor leaders. This policy targets a key voter group: Nevada’s 350,000 hospitality workers, predominantly immigrants, who earn enough to pay taxes on their tips.
In response, Democratic leaders and union representatives have embraced the idea of a no-tax policy on tips while emphasizing that their broader economic plans will better support working-class families compared to Republicans. They argue that despite Trump’s proposal, voters should not rely on his promises.
The recent endorsement of this policy by Kamala Harris adds a new dimension to the debate, reflecting a strategic move similar to Trump’s, and drawing national attention to a state-centric issue.
Kamala Harris’s support for Trump’s no-tax policy on tips shifts national focus to Nevada’s hospitality workers ahead of the election
Economists have criticized the proposal as financially imprudent, with estimates suggesting a potential cost of $100 billion to $250 billion over ten years. However, in Nevada, where service workers play a crucial role, the policy could influence the outcome of the election. Democrats worry that Trump’s proposal might sway the state’s Latino, traditionally Democratic service workers.
Mark Longabaugh, a Democratic strategist, urges the party to focus on this issue due to its potential impact on voters. Initially, Trump’s policy seemed unrealistic, but Harris’s support has amplified its importance.
Nevada Democrats, including prominent figures like Rep. Steven Horsford and Sen. Catherine Cortez Masto, have swiftly backed the policy, proposing legislation to mirror this approach. The Culinary Union, with its influential field operation, now has a strong platform to engage its members, who might be skeptical about Harris but are receptive to her policies.
Harris’s endorsement aligns with her ongoing efforts to connect with service workers, contrasting with Republican criticism that she is merely echoing Trump’s strategy. The policy’s impact is anticipated to be particularly important in Nevada, given the high concentration of tipped workers there.
