Nevada
No tax on tips fires up Nevada hospitality workers: ‘I want that!’
Kristine serves gamblers playing countertop video poker screens at the center bar of Las Vegas’s Ellis Island casino. She declines to share her last name for privacy reasons, but is not timid about her support for Donald Trump when asked about his campaign promise to end federal taxation on tips.
“I want that!” Kristine says as she fulfills cocktail waitresses’ orders. “Our tip compliance is too high. They take so much from our paycheck.”
Tip compliance – the tax process for expected earnings from tips – has become a political football in Nevada, with federal lawmakers from both parties piling in to co-sponsor bills or present their vision for how tax exemption for tips should work.
The push for tax relief for a specific sector of wageworker may seem out of the blue if the idea wasn’t so brazenly opportunistic. According to state employment figures, one in four jobs in this crucial swing state are in leisure and hospitality, many if not most of which are tip-earning positions at bars, restaurants, casinos, spas and hotels in Las Vegas and Reno.
The frenzy over the issue started in June, during a Trump rally in Las Vegas, where he surprised supporters, press and members of his own party, saying: “Hotel workers and people that get tips, you’re going to be very happy because when I get to office we are going to not charge taxes on tips.”
It was a “wild-ass promise”, says Ted Pappageorge, treasurer for the Culinary Union Local 226, which represents 60,000 hospitality workers in Nevada.
He points out that during Trump’s four years in office and the four years since, the union’s heard “not a peep out of him” regarding overtaxed wage workers. Indeed, Trump’s signature legislative achievement as president was a tax cut that mainly benefited corporations, real estate developers, and billionaires and millionaires transferring wealth to their scions. “One of the problems is Trump lies, and he lies a lot,” Pappageorge said.
But, Pappageorge added, Trump’s comments created an opening. “There’s actually a requirement now to have a discussion and an opportunity for us to wedge into the discussion, to make it real.”
The union is now seeking tip compliance relief for their members while also advocating to raise the federal sub-minimum wage, which allows employers in some states to pay tipped earners as little as $2.13 per hour.
Trump’s opponents have been listening. In Kamala Harris’s first Las Vegas rally as the presumptive Democratic nominee, she announced that she wouldas also pursue no taxes on tips, delighting rank-and-file Democrats who had become intrigued with the proposal, and irritating Trump supporters who wanted him to have the policy all to himself.
“Why is she copying him?” says Kristine, the Ellis Island bartender. She voted for Trump in the last two election cycles and will again this fall. “I believe in women power, but I feel like we need a better president, like a strong personality, a tough one, to put [things] back to normal.”
Wistful for the pre-pandemic economy, before food, fuel and housing prices shot up, Kristine says it would be nice if people could afford to enjoy themselves again: “Go on vacation again, because everything we make goes to bills, that’s it, and it’s not enough still. Everything is so expensive and you’re making the same money.”
Southern Nevada’s vulnerability to economic slumps has led to two local sayings: the region is “the first to suffer, last to recover” because “when the economy gets sick, Las Vegas catches pneumonia.”
The city was hit hard by pandemic-era travel restrictions. Since then, resorts have recovered strongly, reporting record profits from gaming each of the past three years. In resorts and casinos that are unionized (Ellis Island is not), the culinary union leveraged these historic profits to negotiate higher wages for their members.
Still, many workers say their tip earnings have remained stagnant.
Machines such as the Smarttender beverage-mixer and screen-based ordering systems have depressed tip earnings by dehumanizing the experience and distorting the scale of service, says Sheri Earl, 51, a cocktail waitress at Mandalay Bay. “It looks like a lot of the servers are bringing out so many drinks, but we’re not being tipped on all of those.
“Also,” Earl adds, “people just aren’t tipping the way that they used to because they don’t have the money. I noticed when I’m serving, more people will give $1 for four drinks, whereas it used to be $1 per drink, so I’m serving more drinks, but bringing back less money.”
A lifelong Democrat, Earl’s loyalty to the party had wavered in recent years, and her conversations in the employee break room suggest that many her colleagues will support Trump out of nostalgia for how they thrived before Covid.
But Harris’s candidacy has reaffirmed her allegiance to the Democratic ticket, Earl says. “She’s very optimistic about changes that she wants to do as a female president, and a lot of the tax cuts for the working class helps.
“Now, I don’t think there will ever be no taxes on tips,” Earl clarified. “I expect to pay it, but not at rates where it’s unrealistic, or I can’t support my family, or I can’t pay my bills at the end of the month.”
Others were less inspired.
“It’s a ‘so you vote for me’ promise,” says Samantha, a blackjack dealer at Ellis Island. “I don’t think Congress will let it happen. [The candidates] can say it, and they can hope that because they said it, you’re going to vote for them, but it isn’t going to happen.” Shrugging, she says she does not intend to vote. “Unfortunately, I don’t believe that my vote matters.”
Democratic presidential candidates have enjoyed a winning streak in Nevada that goes back four cycles from Biden’s narrow 2020 win, to Hillary Clinton’s 2.4% margin over Trump, to Barack Obama’s victories in 2012 and 2008. Survey averages currently show Trump leading Harris by 2 to 3 percentage points.
Before Biden dropped out, Trump led by 9 points in Nevada. Harris has rejuvenated Democratic enthusiasm and made strides to corral the unwieldly coalition that defeated Trump four years ago, but Nevada is proving to be a different beast. It’s one of the few swing states in which Trump continues to lead in most major polls. But her canny decision to jump on the no tax bandwagon may help.
Badass Tax Guys, a tax preparation company in Henderson, Nevada, has hundreds of tip-earning clients, and many have mentioned to owner Robert Wagner that the proposal, while intriguing, seems too good to be true.
“‘We see all the upside, and we love keeping our money, but what’s the catch potentially?’ is what I’m hearing right now,” he paraphrases while warning that it would be exploited if not written carefully to solely target those who need relief.
“I would put a tip jar on my desk, you know what I mean?” Wagner quips. “I’ll charge lower fees and you can throw the difference in the tip jar. All of a sudden, my income is to going to go down quite a bit. I generally like the idea overall, but if you’re going to do that there needs to be a way to stop Wall Street from taking advantage of it.”
Nevada
28-year-old inmate at Southern Nevada prison dies
A man serving time at the Southern Desert Correctional Center for felony reckless driving died last month, the Nevada Department of Corrections said Tuesday.
Shiloh Walker, 28, died at the Indian Springs facility on Nov. 24, a news release said. Cause of death was not listed.
Walker was serving a sentence of up to six years after a plea agreement was reached in 2022 following a DUI crash that happened May 31, 2021 in Las Vegas, according to online court records.
An autopsy was requested following Walker’s death, though results were not available as of Monday evening. Attempts to reach Walker’s family members have been unsuccessful, according to the department.
Contact Bryan Horwath at bhorwath@reviewjournal.com. Follow @BryanHorwath on X.
Nevada
Is USPS breaking vow not to use Sacramento for Northern Nevada mail?
After widespread condemnation last year, the U.S. Postal Service backed away from plans to move its Reno mail-processing operations to Sacramento — but did it stay true to what it told the public?
The question arose recently after letters sent from one Carson City address to another in Carson City were both postmarked in Sacramento.
Northern Nevadans did not want first class mail sent from one Northern Nevada address to another going first to California. They sent a unified message to the USPS all the way up to the postmaster general.
Critics of the USPS plan were especially worried about delays from mail having to go back and forth over the Sierra during winter.
The Washoe County District Attorney’s office filed a lawsuit over the plan, the Washoe County Commission voted to oppose the plan, public comment was universally opposed, and Democratic and Republican elected officials from across the state joined to stop it.
Could it possibly have happened anyway? The answer is yes, temporarily, for a brief time.
How letters sent in Carson City came to be processed at Sacramento USPS facility
A reader told the Reno Gazette Journal they’d twice had letters internal to Carson City postmarked in Sacramento, so we asked USPS if the policy had changed.
“Mail processing for First Class mail that originates in Northern Nevada and is destined to Northern Nevada has not changed,” USPS spokesperson Sherry Patterson responded by email.
“However,” she added, “without the specific mail piece and class of mail, we cannot determined if there is an issue.”
The reader then supplied a photo of the two envelopes postmarked Nov. 5 in Sacramento, and this was shared with USPS.
“Our processing machine in Reno was temporarily out of service while we awaited a replacement part,” Patterson said after viewing the postmarks to nail down the specific date the letters went through Sacramento.
“To ensure that mail was not delayed during this time, we implemented a contingency plan that involved routing certain mail to our Sacramento facility for cancellation and processing. This measure allows us to maintain service continuity and minimize disruptions for our customers. We understand that this may cause some confusion, and we are committed to ensuring that all mail is processed efficiently and accurately.”
Bottom line: Regarding first class mail that’s being sent to and from Northern Nevada addresses, it’s still USPS policy to process that in Reno at its Vassar Street facility, she said.
The path these particular letters took, Patterson added, “is indeed an unusual occurrence.”
Mark Robison is the state politics reporter for the Reno Gazette Journal, with occasional forays into other topics. Email comments to mrobison@rgj.com or comment on Mark’s Greater Reno Facebook page.
Nevada
Holiday loneliness affects thousands in Nevada as many face Christmas away from loved ones
LAS VEGAS (KTNV) — Loneliness has become a significant health issue for people everywhere, and the holiday season sometimes intensifies those feelings. For many, December looks like family gatherings, matching pajamas and bustling homes. But this time of year can also be very difficult for those who may be battling distance, work commitments or recent life changes.
Marc Valli, an Army veteran who served in Vietnam, has lived in Las Vegas since 1988. He moved to Nevada to join a ministry and be closer to his wife’s parents.
WATCH| Shellye Leggett talks to an army vet who’s recently moved into Escalante at the Lakes assisted living facility
Holiday loneliness affects thousands in Nevada as many face Christmas away from loved ones
“I wanted to come and join ministry here. Also my wife’s parents lived here,” Valli said.
Valli’s wife Barbara, known to friends and family as Bobby, passed away in 2018 after 54 years of marriage.
“I’m still counting the years. We’ve been married 54 years,” he said.
His children moved him into Escalante at the Lakes assisted living facility in June, making this his first holiday season in his new home.
“People are very nice, they treat you good,” Valli said.
Come Christmas Day, the facility’s common room will be filled with residents ready for holiday activities, but Valli hopes to get outside these walls to see his family that still lives nearby.
“I have grandkids. One goes to Cal Poly. He’s here right now, but he’s on vacation, and then I have two little granddaughters, one’s 11, one’s 7,” Valli said. “I don’t know if they’re gonna come for Christmas or I’m going there.”
Gus Farias, the executive director of Escalante at the Lakes Assisted Living, says many of his residents don’t have family nearby. Keeping their spirits high throughout the holidays is an important task.
“We can tell when our residents are feeling down. There’s a lot of pressure during the holidays because some of our residents don’t have families that are nearby, but they have us,” Farias said.
The organisation A Mission for Michael released a study showing just how many people are expected to spend the holidays alone this year. Nevada ranked 43rd on the list of loneliest states, with more than 212,000 people expected to spend Christmas by themselves.
“It’s pretty surprising that there’s so many Nevadans that are gonna spend the holidays by themselves,” Farias said.
He says combating loneliness will take a community effort.
“When you’re at the grocery store or whatever, reach, look back and ask them, you know, wish them a merry Christmas or happy holidays and ask them how they passed their holidays in the past because we, we as a younger generation than our seniors, we can learn a lot from that,” Farias said.
It’s an effort that Valli says makes the holidays a little brighter.
“Oh, it makes a big difference,” he said.
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