Las Vegas servers split on ‘No Tax on Tips' proposal
LAS VEGAS (KLAS) — During his Las Vegas campaign rallies, President Trump repeatedly echoed a promise of 'No Tax on Tips' due to the city's high rate of hospitality and service workers. The proposal is now being considered as part of the president's 'Big Beautiful Bill' which would extend his 2017 tax cuts. Congressional Republicans are hoping to get the legislation past the finish line by the end of next month.
Last year, more than 70% of Nevadans expressed support for the idea of nixing taxes on tips, according to an 8 News Now/Emerson College poll. Today, service workers still hold various opinions on the bill.
'They have done it a really long time with being taxed, so it's definitely worth giving it a shot just to see how it would go without being taxed on tips,' said Haylee Constance, who has worked in the restaurant industry for a decade now and is in favor of the proposal.
The Primal Steakhouse waitress has also worked in the restaurant industry in other states, like Texas.
'Here in Nevada, you get at least minimum wage, and some places like casinos do give you higher,' she explained. 'We do get taxed on our minimum wage, so I think that's something that people sometimes forget as well. If I'm also being taxed on my tips, then that's just more that's coming out of my pocket, when I am going to work and rightfully making that on my own.'
Constance told 8 News Now she believes the move would be life-changing for servers, like herself, in a good way.
However, not all in her position agree. Andrew Covarrubias has been in the restaurant industry for three years now, formerly working in construction.
'I do make a lot more since construction,' the Jr. Manager explained. 'I used to make maybe $16 for starting and then $20 an hour, but here the tips really help me a lot.'
Despite the positive influence tips have on his life, Covarrubias told 8 News Now he is against the proposal.
'I feel the cons outweigh the pros for sure,' Covarrubias said. 'It wouldn't really benefit other people, like with Medicare, and maybe it will help fund education. Education is a big thing for me, too. I feel like a lot of underprivileged kids need the money.'
Covarrubias not only expressed concerns about the repercussions to vulnerable populations, but also the impact on the bigger picture as a country.
'The European Union and everything, they have big taxes on everything, but they have free school, and they can pay for healthcare and everything like that. I feel like some people would understand and see the big picture behind everything,' he said.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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