- President Donald Trump stopped in Las Vegas on Saturday.
- He discussed his proposal to exclude advice from federal tax workers.
- Trump said he would work with Congress to advance the legislation.
President Donald Trump stopped in Las Vegas on Saturday to share details on the plan of his administration to Exclude advice from federal tax workers.
The president announced for the first time his proposal last June during a campaign rally, also in Nevada, where an important part of the workforce is in the hotel industry and where he marked a major victory in November.
Trump would need approval for the modification of Congress tax, where the Republicans hold majorities in both chambers.
Former vice-president Kamala HarrisThe 2024 Democrat presidential candidate promoted a similar idea during his campaign.
During his stay in Las Vegas, Trump said that he was working with members of the congress “in the coming weeks” to ensure that a bill reaches his office.
“No tax on advice!” Trump said that like a crowd of applauded supporters nearby. During the speech, Trump said that his administration would also increase workers’ salaries, but did not share the additional details.
During her speech, Trump welcomed the American Hotel and Lodging Association CEO and President Rosanna Maietta on stage, where she spoke of the potential impact of the proposal on the service industry.
“I am here to tell you that the American dream is very much alive in the hotel industry today,” she said.
She referenced the The Trump tax bill promoted in 2017 During his first administration. “The” no tax on advice “is based on this momentum,” said Maietta. “So we are delighted to support you in this effort.”
She added that her organization would urge Congress to adopt Trump’s proposal.
In June, however, Trump’s remarks sparked criticism from the union of culinary workers, which included section 226 of the Culinary Workers’ Union and the Local 165 section of the Barmen Syndicate. The union represents 60,000 workers in the Las Vegas and Reno regions.
“For decades, the Culinary Union fought for workers’ rights and against unfair taxation,” said secretary-treasurer Ted Papageorge in a statement at the time. “The relief is definitely necessary for the pointed salons, but nevada workers are intelligent enough to know the difference between the real solutions and the wild campaign promises of a condemned criminal.”
President Trump said he will work with congresses to ensure that the bill is reaching his office. Mandel NGAN / AFP / Getty images
In a statement to Business Insider on Saturday, Papageorge said: “The Culinary Union welcomes plans to end taxes on the advice, but it should not stop there.”
“Eliminate taxes on advice and put an end to the salary of less than a minimum of $ 2.13 – this is reality in too many states across the country – will increase millions of hotel workers,” -It declared. “Taking the two questions is essential to make sure that a job is enough for workers to support their family.”
The declaration urged the Republicans to cross the aisle and to work with the Democrats to find solutions.
“Republicans have made promises to reduce the cost of living for Americans. The delivery of these commitments must start with significant measures, and they must work with Democrats to increase the wages less on essential products such as food, gas and housing, “added Papageorge.” It is time for the Congress to act now provides real solutions to workers’ families. “
Some experts who follow industry earlier have told Business Insider that the elimination of federal taxes on advice could have involuntary negative consequences, such as encouraging Employers to reduce wages To avoid taxes.
Martha Gimbel, executive director of the Budget Laboratory of the University of Yale, told Bi that a new system would create “an incentive for employers to try to obtain more remuneration from their workers in the form of tips”.
Gimbel said that the proposal could allow business owners to move the burden of employee salaries to customers and claim tax reductions thanks to lower pay and social security fees.
The White House representatives did not respond to a request for comments from Business Insider.
Trump’s speech in Nevada one day comes after his visit California to contact forest fires who have devastated parts of the County of Los Angeles and elsewhere.
During his stay at a round table with local California officials, the president said that he would help finance rescue efforts but did not detail the quantity of federal aid that California could receive.
Trump also said that he would implement a decree to direct more water from the Sacramento-San Joaquin Delta in Southern California and Central Valley.
Friday, Trump also visited North Carolinawhere certain parts of the state are always recovering from the impacts of Hurricane Helene.
Trump also launched the revision or elimination of the Federal Emergency Management Agency on Friday, describing it as “great disappointment”.
The president said that his administration was considering mechanisms for potentially autonomous disaster governors.