LAS VEGAS – President Donald Trump capped off a frenzied first week back in office with a stop in Las Vegas, where he promised to cut taxes on tips for service workers.
Trump spoke in front of a large banner reading “No Tax on Tips” at the Circa Resort and Casino, emphasizing that economic confidence is soaring in the United States. He stated that “America’s decline is over,” echoing themes from his inauguration remarks.
The tip-heavy hospitality industry comprises more than a fifth of all jobs in the state, and Trump’s pledge to end taxation of income from tips is expected to be a popular move with service workers.
Trump joked that he would go after workers who have not reported their tipped income over the last 10 years, and that a “young beautiful waitress” had given him the idea for the policy proposal. His Democratic opponent in 2024, former Vice President Kamala Harris, has also pledged to do away with taxes on tips, following in Trump’s footsteps.
The proposal to end taxation on tips is expected to add to the nation’s debt, according to the nonpartisan Committee for a Responsible Federal Budget, which estimates that the proposals Trump made on the campaign trail could add $7.5 trillion to the debt over the next decade.
Despite concerns from Republican allies in Congress, Trump is pushing a plan to explicitly use revenue from higher tariffs on imported goods to help pay for extending trillions of dollars in tax cuts. However, this plan is likely to face opposition from Republican budget hawks concerned about the reliability and durability of tariff revenue.