‘No Tax on Tips’ would’ve helped Las Vegas servers — were it not for a ‘Trump slump’

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After more than 30 years in the Las Vegas restaurant industry, waiter Aaron Mahan ought to be pleased about Donald Trump’s much-touted “No Tax On Tips” policy.

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Unfortunately for this one-time supporter of the U.S. president, the small gain he eked out on his tax return has been dwarfed by the drop in income as tourist numbers plunge.

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“I’m currently making probably $2-3,000 less (per month) than I was before,” the 53-year-old told AFP.

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“It’s been harder for me to make ends meet with a much lower salary.” Las Vegas, a byword for gambling and excess, last year saw a 7.5-percent fall in the number of visitors — the largest drop outside of the Covid pandemic since the Las Vegas Convention and Visitors Authority began keeping records in 1970.

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Observers say Trump’s frequent outbursts against allies have deterred foreign tourists, especially Canadians, who are boycotting the United States over the massive tariffs he has imposed on America’s northern neighbor.

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Add to that the cutbacks that many American households are making as they grapple with stubborn inflation — caused in part by rising oil prices as a result of the US-Israeli war on Iran — and Sin City feels altogether a lot less busy.

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‘Trump slump’

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Mahan considers himself a victim of what he calls the “Trump slump.” The restaurant at his casino, which used to operate around the clock, has laid off about 20 employees and switched to a buffet format that is open only in the morning.

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Instead of serving customers at their tables, he now stands behind a counter. This lack of interaction means less chance for customers to show their gratitude in a country where tipping is widespread on everything from food delivery to haircuts.

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“I’ve lost about 75 per cent of my tips, which is a significant amount of my income,” he said.

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The Culinary Union, which represents 60,000 hospitality workers in Nevada, says thousands of its members are now out of work or seeing their hours cut.

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Ted Pappageorge, the organization’s secretary-treasurer, says Trump’s headline-grabbing pledge ahead of the presidential election has been effectively nullified by the reality of economics that his unpredicability has created.

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“If you’re not making the tips, what good is the tax credit?” he fumed.

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Tips make up a significant portion of the income for millions of servers, housekeepers, taxi drivers, and hairstylists across the United States.

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Trump’s 2024 election pledge of “No Tax on Tips,” which he said was inspired by the struggles of a Las Vegas waitress, allows for the deduction of up to $25,000 in tips from federal taxable income through the end of 2028.

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More than 7.5 million Americans took advantage of this provision this year, claiming an average deduction of $7,000, according to the U.S. Treasury.

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‘Not enough’

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