Connect with us

Nevada

‘No Tax on Tips’ excites —and divides — Nevada voters

Published

on

‘No Tax on Tips’ excites —and divides — Nevada voters


LAS VEGAS — It’s a taxing question that might just tip the Silver State’s voting results in Donald Trump’s favor come Election Day.

Since the former president’s June 9 declaration of “No Tax on Tips” during a well-attended outdoor rally in Sin City, the idea has caught on with workers in several tip-reliant occupations, from brothels to beauty parlors.

Food and drink servers, unionized or not, also approve.

But it’s a long trip from the serving floor to the enactment of legislation. Despite an impressive lineup of backers — some of whom have no kind words for the ex-prez — the notion still faces formidable odds.

Advertisement

Among supporters are the Silver State’s two US Senators, Catherine Cortez Masto and Jacky Rosen, who’ve signed on as the sole Democrat co-sponsors of the “No Tax on Tips Act” introduced in June by Texas GOP Sen. Ted Cruz.

In the House, Nevada Reps. Steven Horsford and Susie Lee are the only Democrats to co-sponsor Rep. Byron Donalds (R-Fla.) measure that mirrors the Cruz bill.

Progress appears slow: The Cruz bill, S. 4 621, was assigned in June to the Senate Finance committee. H.R. 8941, the Donalds bill, was sent to the House Ways and Means panel. But neither measure has been scheduled for hearings.

Ted Pappageorge, secretary-treasurer of the Culinary Workers Union Local 226, would love to see the taxman barred from the tip jar.

Pappageorge told The Post that between 18,000 and 20,000 of his local’s 60,000 members are tipped employees.

Advertisement

“There’s no other concentration of tip earners that are actually represented by a union like this anywhere else” in the nation, he said.

Las Vegas has the highest concentration of tipped workers of any location in the country, a union official said. luckybusiness – stock.adobe.com

Pappageorge said his members “never had a peep” from President Joe Biden or Trump during their terms in office, but the union executive applauded the ex-prez for having “got the conversation started.”

Of greater value to tipped workers, Pappageorge said, would be to eliminate the federal “sub-minimum wage” of $2.13, where tips make up the difference between that and the $7.25 regular minimum, and just pay the regular minimum instead. Also helpful would be more sanity on the part of the IRS when the tax agency develops the “tip allocation rate,” its estimate of what tipped employees get in gratuities on which “they charge you taxes accordingly.”

Instead of setting a fixed allocation rate, the tax collectors should view tips “differently than wages,” he said. “We’re not say not taxes, but we’re saying it’s different.”

Pappageorge said the dollar amount of tips collected by his union members is not constant: “It’s up and down.”

Advertisement

Karen Off is the owner-operator of bustling Fringe hair salon in Mesquite, some 90 miles northeast of Las Vegas. She and the independent contractor stylists there get tips on top of fees for specific services, and Off said the idea of “no tax on tips” is appealing. “They tax us enough,” she said.

She said a tip is “an extra bonus that you earn. Because I know if I get a good waitress, she gets more than if I get somebody who never checks on me. … I earn my tips by doing a good job.”

Yolanda Scott, a 32-year Culinary Local 226 member in Las Vegas, said because of IRS tip allocations, “I just get whatever I get, because of the IRS takes control of that, and then my tips are kept. I get my tips at the end of my shift, my work shift.”

She said no taxes on tips would be “a great thing,” particularly since “everything is so expensive. I mean, we have to survive. We want to live.”

Liz Hudson, another union member who’s worked at the New York, New York casino for 25 years delivering drinks to gamblers on the casino floor, said she “would definitely benefit” from tax-free tips.

Advertisement

The benefit would give her “probably triple what I’m making now.”

Hudson said it would even help when patrons forget to tip when served.

“When we get stiffed, we’re getting taxed on that drink that we just brought out, and we get nothing for it,” she said. “So at least if we got rid of getting taxed, it wouldn’t be as much of a pain to not get tipped.”

Away from the Las Vegas Strip, over at the Red Rocks Casino Resort & Spa, server Bridget Brooks supports tax-free tips.

“It would be great,” she said. “They tax us so much we barely get a paycheck. I understand that the money goes to the economy, but how about taking it in other ways so they’re not taxing us more than we make?”

Advertisement

Not everyone is delighted with the proposal, however.

“I’m not sure why we would not tax their earnings versus other people’s earnings,” said David Neumark, distinguished professor of economics at the University of California—Irvine, who has studied the earning of tipped workers. “Everyone should be treated the same.”

He said “wages might fall” if tips aren’t taxed: “If I cut the tax on your income by 30%, your after tax income might not go up by 30% because more people may choose to work and that will lower pay.”

One business owner enthusiastically supports exempting tip income from taxes—and Trump, whose rally comments sparked the current legislation.

Bella Cummins, the 74-year-old operator of Bella’s Hacienda Ranch, a legal brothel in Wells, Nevada, near Reno, said the move would help operators lower operating costs.

Advertisement

“The brothel’s sex workers also benefit,” she said in a statement. “Legal sex workers are independent contractors who pay out of pocket for their medical fees, sheriff cards, and other business essentials such as adult toys and lingerie. When workers receive untaxed tips, it allows them to set more competitive prices for their services, attract more clients, enhance their reputation, and expand their customer base.”



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Nevada

Nevada Dems condemn Virginia City incident

Published

on

Nevada Dems condemn Virginia City incident


RENO, Nev. (KOLO) – Nevada Democrats are issuing condemnations after a video emerged over the weekend showing a confrontation at Hot August Nights in Virginia City.

Cortez Masto took to Twitter to say:

“Racism has no place in Nevada. I’m appalled by the incident this weekend in Virginia City and support the Storey County Sheriff’s investigation.”

Fellow Nevada Democrat also took to Twitter, saying:

Advertisement

“Nevada is a proudly diverse, inclusive, and welcoming state. The racist and hateful behavior in this shameful video does not represent who we are, and I join officials across our state in strongly condemning it.”

Attorney General also had this to say:

“My office is aware of the hateful, racist incident caught on camera in Virginia City, one of Nevada’s most storied towns. Individuals are shown verbally harassing a Black man and apparently referenced a “hanging tree” during their aggressive interaction with him. As Nevada’s Attorney General, I wholly condemn their actions. Such hate does not represent the values we hold here in Nevada, and it should not be countenanced. Accordingly, I have reached out to Sheriff Cullen to offer my support in his office’s investigation into this matter.

I am proud to be a Nevadan, as are the employees from my office who reside throughout our state, including those living in and around Virginia City.

Nevada is rich in diversity, with people from different backgrounds, and I know us to be welcoming and kind. Many have already voiced their disgust in the actions that took place. I encourage others to likewise denounce the racism displayed in the video.”

Advertisement

The trio of Dems joined Republican Governor Joe Lombardo in also condemning the incident.



Source link

Continue Reading

Nevada

Satellite Startup Inks Sierra Nevada Defense Deal, Funding Round

Published

on

Satellite Startup Inks Sierra Nevada Defense Deal, Funding Round


Muon Space, a closely watched Earth-imaging startup, has signed a deal with defense firm Sierra Nevada Corp. and closed a $56.7 million fundraising round.

Venture capital firm Activate Capital led the Series B funding round for the Mountain View, California-based satellite maker, Muon Space said. Costanoa Ventures, Radical Ventures, and Congruent Ventures also joined the round.



Source link

Continue Reading

Nevada

Authorities probe alleged racist incident in Virginia City

Published

on

Authorities probe alleged racist incident in Virginia City


The Storey County Sheriff’s Office is investigating what it says are concerning reports and video of an alleged racist incident that occurred in Virginia City on Friday.

The Sheriff’s Office is investigating reports of a video on TikTok in which a man alleges that a white man made racist statements toward him in Virginia City.

“We at the sheriff’s office do not condone or support racism, inequality, or hate speech,” the department stated in a news release.

“All reports to the Storey County Sheriff’s Office are investigated thoroughly and treated seriously,” the release said. “A case has been pulled regarding this incident and is being investigated. We thank each and every one of you for your patience while the investigation is being finished. “

Advertisement

The Virginia City Tourism Commission also released a statement condemning the incident, which it called “hateful and racist” and underscoring that the commission finds “this behavior abhorrent and inexcusable” and “stands against any acts of hatred or violence.”

The video was taken by a Black man, not visible in the video, who said he was working a job when the incident occurred. A man who uses the name “Uncle Ricky” or unclerickyd1 on TikTok said on the social media platform that he was the man who took the video and was the target of the alleged racist remarks.

He alleges in the video that a white man, who is seen giving him the finger, had told him they had “a hanging tree for people like me” in the city.

A loud argument with much profanity ensued, with some people who seem sympathetic to the man, others not, until a woman who said he was on her property appears to escort him away as he continues to protest and repeatedly asks her not to touch him.

The incident happened during the annual Hot August Nights classic car event.

Advertisement

Organizers of the event also released a statement called the incident “a very unfortunate and intolerable incident occurred during our kick-off event in Virginia City this weekend.”

“It was inexcusable and not at all representative of our classic car culture or community,” the statement continued. “Hot August Nights celebrates and welcomes individuals from all walks of life and backgrounds and our organization does not condone nor support racism or hate speech.”

The statement ends, noting that “we hope that this will not dampen our attendees and participants spirits as we host our events in Reno-Sparks over the coming week. Our commitment is for a safe and inclusive space for everyone.”

Contact Jeff Burbank at jburbank@reviewjournal.com or 702-383-0382. Follow him @JeffBurbank2 on Twitter.

Advertisement





Source link

Continue Reading

Trending