Staff Reports
Governor Joe Lombardo, a Republican from Nevada, is taking a stand against the federal tax on tips, a move inspired by former President Donald Trump—who else? At a campaign rally in June, Trump highlighted the issue, and Lombardo, always eager to take a page from the Trump playbook, jumped on board. This is a classic case of a politician recognizing an opportunity to align with everyday Americans, particularly those in the service industry who work their tails off for those well-deserved gratuities.
Nevada is no stranger to a bustling service industry. According to the Bureau of Labor Statistics, the state boasts the highest concentration of waitstaff in the entire country. It’s no surprise then that Lombardo’s pro-tip stance is resonating with many Nevadans who believe in keeping their hard-earned cash. He articulated that Nevadans deserve to pocket every cent from the tips they earn, rejecting the notion that Uncle Sam should get his greasy hands all over those extra dollars. A federal ban on taxing tips has become an attractive rallying cry for the state’s workforce that often goes above and beyond to ensure that diners walk away satisfied.
Nevada governor joins chorus endorsing removing federal tax on tips https://t.co/2Fvbbk9BKs
— Washington Examiner (@dcexaminer) August 2, 2024
While Lombardo embraces the idea wholeheartedly, a couple of Democratic senators from Nevada, Jacky Rosen and Catherine Cortez Masto, have thrown their hats in the ring as well by supporting the No Tax on Tips Act. Could this be a classic move by Democrats to appear in favor of the working class while still basking in the glow of tax revenue? That might just be a tasty piece of irony for the Nevada electorate to chew on. Meanwhile, Culinary Union Local 226 has also jumped on the bandwagon, showing how quickly the left can warm up to an initiative once it starts gaining traction.
Trump has managed to put this issue front and center in the national conversation, with a classic political maneuver aimed at Nevada—an electorate that has been less than enthusiastic about him in previous elections. However, it seems Lombardo’s victory in the 2022 gubernatorial race—with that Democrat incumbent packing his bags—might indicate a shift in the political winds of the Silver State. Lombardo refreshed the local narrative by promising to deliver for Nevadans, and now he’s gearing up to take a common-sense stance that could make a sizable impact.
However, it won’t be as easy as winking at Congress and there it is, no more tax on tips—no, they’ll need to roll up their sleeves. Removing the tax will require both Congressional approval and the President’s signature, which is about as likely as finding a needle in a haystack, considering the current political climate. The question remains: will the need for some common-sense tax relief gain enough traction to cross the political aisle, or will Congress find a way to bog it down in red tape? Either way, for all those tipping champions out there, they should be encouraged. After all, their hard work deserves a reward—especially if it comes in the form of cash that stays in their own wallets.
