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No tax on tips fires up Nevada hospitality workers: ‘I want that!’

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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.

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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.

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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.

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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.

People walk through the casino floor at the Tropicana hotel-casino in Las Vegas in March. Photograph: John Locher/AP

“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.

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“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.

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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.”



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Nevada

Nevada State Veterans Memorial relocating to new home in Centennial Hills

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Nevada State Veterans Memorial relocating to new home in Centennial Hills


LAS VEGAS (KTNV) — There will be a new home for the Nevada State Veterans Memorial soon.

On Wednesday, the Nevada Department of Veteran Services (NDVS) and the City of Las Vegas announced a special celebration to say “farewell” to the old location of the Nevada State Veterans Memorial in front of the Grant Sawyer Building.

The celebration will be held at the current site located in front of the Grant Sawyer Building on Friday, Sept. 13, at 9 a.m.

The new location will move to the Thunderbird Family Sports Complex in Centennial Hills.

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As state officials transition from the Grant Sawyer Building into new offices at the McCarran Center, NDVS said the new offices are too small for the two-acre memorial — therefore, it must find a new home.

NDVS officials worked with Gov. Joe Lombardo’s office, Nevada State Public Works, and Las Vegas Ward 4 Councilwoman Francis Allen-Palenske to keep the memorial within Las Vegas following a local veterans group’s petition.

State officials said the new site will open up potential enhancements around the memorial, including an outdoor amphitheater. They said the new site will also have restrooms, parking, lighting, and easy access for viewing





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Paseo Verde takes first loss of Little League World Series, Nevada falling to Texas 5-2

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Paseo Verde takes first loss of Little League World Series, Nevada falling to Texas 5-2


LAS VEGAS (KTNV) — After winning their first two games in Williamsport, Paseo Verde has received its first loss in the Little League World Series.

Nevada fell to Texas 5-2 on Wednesday afternoon. The team isn’t eliminated yet, as the boys from Henderson will play the winner of Hawaii and Florida in the consolation bracket championship.

PV still has a chance to be the first Nevada Little League team since 2014 to win it all.

The team of Bourne, Texas got off to a fast start in the 1st inning, putting up two runs with Wyatt Erickson pitching for Nevada. In the 2nd, Paseo Verde answered by scoring two runs themselves to tie things up.

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Texas would break the tie in the 3rd inning, bringing in three runs to take a commanding 5-2 lead. The PV All-Stars were unable to rally back, failing to put any more runs on the board through the 6th.

Nevada’s next game will be against Hawaii or Florida on Thursday. The winner of that game will advance to the Little League World Series U.S championship game. The loser will be eliminated.





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Missing Utah family found in Nevada

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Missing Utah family found in Nevada


HUMBOLDT COUNTY, Nev. (KOLO) – A missing Utah family have been found in Humboldt County by Nevada Highway Patrol.

Police with the St. George Police Department in Utah had been looking for Brittany Etta Deal and her three children since Monday. The children had been last seen on Aug. 19 at 5:15 p.m. when they were picked up from daycare in St. George, Utah in a car registered to Deal.

It was not initially known if Deal was inside the car as well.

Police say there is an active protective order between David Remley, who had picked the children up, and Brittany stemming from a recent family fight. Due to this order, Deal and her children were considered to be in danger.

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NHP found Deal and her three children safe and unharmed. Remley, meanwhile, was placed into police custody.



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