Date Published: April 17, 2026, 02:32h.
Last Modified: April 17, 2026, 02:32h.
- President Trump makes an appearance in Las Vegas to promote his “No Tax on Tips” initiative
- Trump emphasizes that Americans now have a president who understands and supports the working middle class
During his visit to Las Vegas on Thursday, President Donald Trump shared the origins of his proposal to eliminate federal taxes on gratuities.
At the AC Hotel Las Vegas Symphony Park, Trump recounted how during a 2024 visit to Southern Nevada, a waitress informed him that tips shouldn’t be taxed.
“Las Vegas is where the concept of ‘No Tax on Tips’ was born. A young waitress approached me and said, ‘Sir, we should have no tax on tips.’ To which I replied, ‘That’s the best idea I’ve ever heard.’ I immediately told the media that there would be no tax on tips. That was the moment,” Trump revealed.
“Las Vegas hosts the highest number of tipped employees anywhere in the nation, indeed, the entire globe,” the president added. “Thanks to our tax reductions, countless waitstaff, casino workers, bartenders, bell boys, barbers, caddies—let’s not forget those caddies—and valets enjoyed the largest tax refunds of their careers.”
Tax Exemption Capped at $25,000
The No Tax on Tips provision is part of Trump and the Republican Party’s One Big Beautiful Bill, signed into law on July 4, 2025. This law enables tipped employees to keep their full tips up to $25,000 before they are subject to income tax.
The IRS will not impose taxes on the initial $25,000 in tips for the federal tax periods from 2025 to 2028. However, it will require Congressional approval for an extension.
Then-Vice President Kamala Harris, who ran as the Democratic candidate in the 2024 race, stated her support for ending federal taxes on tips as well, leading Trump to label her a “copycat.”
While in Las Vegas, Trump expressed gratitude to Nevadans for their support, noting, “The competition wasn’t exactly fierce.”
“Americans finally have a president who believes in their potential. I am committed to rewarding your exemplary efforts following four years of embarrassment. Our nation was once a laughingstock,” Trump proclaimed.
“Everyone around the world laughed at us. But those days are gone,” Trump asserted.
Gambling Tax Deductions Remain Unchanged
Another aspect of the One Big Beautiful Bill that significantly affects Nevada and the gambling sector is the reduction of gambling loss deductions from 100% to 90% against winnings. Consequently, an individual who wins $100,000 while also losing the same amount would still owe federal taxes on an additional $10,000.
U.S. Representative Dina Titus (D-NV), who has proposed a bill in Congress to revert the gambling deduction to 100%, expressed her frustrations on social media.
“Just think about it: you are taxed on income you never actually earned,” Titus stated in a TikTok video. “We call that phantom income. It’s unfair, but this is the reality under President Trump’s Big Beautiful Bill.”