LAS VEGAS (KSNV) — Tipped workers in Nevada, particularly in Las Vegas, are grappling with the reality behind the "no tax on tips" promise, which experts say is misleading. Debra Jeffries, a cocktail waitress and 45-year member of the Culinary Workers Union, expressed her frustration, saying, "Yeah, it's quite a bait and switch from the campaign days to what it basically boils down to. And we're not even sure what that boils down to."
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Workers like Jeffries will still see taxes deducted from their paychecks initially. "We're not getting tipped like we used to. And so I'm getting taxed on, if someone doesn't tip me, you know, it's kind of like I look at it like money out of my pocket," Jeffries said.
Ted Pappageorge, Secretary-Treasurer for the Culinary Union, highlighted three major issues: the provision doesn't cover included gratuities, married couples must file jointly to be eligible, and the tax cuts expire in 2028. "The billionaires got their big windfall tax cuts, and they're permanent, but are a sunset for workers. And that's a slap in the face to workers," Pappageorge said.
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The Culinary Union is actively engaging lawmakers to amend the legislation for better relief for tipped workers before the next tax season. Lipman urged individuals to look beyond the "no tax on tips" headline and ensure they file correctly in April.
"If we get it done right and make sure the Treasury does the regulations properly, then there could be some relief for workers," Pappageorge said.