Trump promised to end taxes on tips, but some Las Vegas workers are still waiting for relief

Las Vegas is a city known for its vibrant nightlife, bustling casinos, and world-class entertainment. But for the hardworking waiters, dealers, and bartenders on the Vegas Strip, tips are more than just a thank you – they are a vital source of income.

Sebastian Espinoza, a busser at one of the city’s largest casinos, is one of the approximately 365,000 hospitality workers in Las Vegas. Like many others in the industry, Espinoza relies on tips to make ends meet. However, with inflation on the rise, a simple trip to the grocery store has become a financial gamble for him.

President Trump’s campaign promise to eliminate taxes on tips caught the attention of workers like Espinoza. However, 100 days into Mr. Trump’s second term, there has been no legislative action on the issue. Union leaders, including Ted Pappageorge of the Culinary Workers Union Local 226, are urging the administration to take real action on this crucial issue.

Two bills are currently making their way through committees in Congress. The Senate’s No Tax on Tips Act aims to eliminate federal income tax on tips, while the House Tips Act, introduced by Democratic Rep. Steven Horsford of Nevada, goes a step further by replacing the sub-minimum wage for tipped workers with the federal minimum wage of $7.25.

Treasury Secretary Scott Bessent believes that revenue from tariffs could fund the proposed plan as part of a larger tax package set to be unveiled this summer. With bipartisan support and the president’s backing, there is hope for progress on this important issue.

For workers like Espinoza, not having to pay federal taxes on tips would mean hundreds of dollars in savings each month. He emphasizes the urgency of the situation, urging policymakers to prioritize the financial stability of working families.

As the debate continues in Washington, the fate of tipped workers in Las Vegas hangs in the balance. The outcome of these legislative efforts could have a significant impact on the livelihoods of thousands of hospitality workers in the city.

[Author: Andres Gutierrez, CBS News Reporter]