Republicans Double Down On Lowering Taxes
Governor Joe Lombardo (R-NV) has expressed his support for a federal policy that would exempt tips from being taxed. This stance comes in the wake of former President Donald Trump spotlighting the issue during a campaign rally in June.
Nevada, with its vibrant service sector and the highest number of waitstaff per capita in the country, is a key player in this debate. According to the Bureau of Labor Statistics, the state’s large community of tipped workers has made the proposal particularly appealing. Governor Lombardo voiced his support for this initiative in an interview with KLAS-TV, stating, “Nevadans working in the service industry put in tremendous effort to deliver exceptional service and support their families. They deserve to keep every tip they earn. I am in favor of a federal ban on taxing these tips, so our workers can retain more of their hard-earned money.”
Lombardo’s endorsement aligns him with other prominent figures and organizations advocating against the taxation of tips. U.S. Senators Jacky Rosen (D-NV) and Catherine Cortez Masto (D-NV) have supported the No Tax on Tips Act, which aims to exempt tipped income from federal income tax. Additionally, Culinary Union Local 226 recently backed efforts to eliminate the tax on tips, reinforcing the push for this change.
Former President Trump highlighted this policy during his rally in Nevada, attributing the idea to a conversation with a waitress he met before his speech. This proposal not only resonates with Nevada’s service workers but also represents a strategic move to appeal to the state’s electorate. Nevada, which did not support Trump in the 2016 or 2020 elections, did, however, elect Lombardo over former Democratic Governor Steve Sisolak in 2022. Lombardo’s victory was notable as one of the few instances where a Republican challenger unseated a Democratic incumbent that year.
For this proposal to become law, it would require action from Congress and the President’s approval, marking a significant shift in how tipped wages are treated under federal tax regulations.
