- President Donald Trump stopped in Las Vegas on Saturday.
- He discussed his proposal to exclude workers ’ties from federal taxes.
- Trump said he would work with Congress to advance the legislation.
President Donald Trump stopped in Las Vegas on Saturday to share details about his management plan to exclude federal taxes.
The President announced for the first time his proposal last June during an electoral gathering, also in Nevada, where a large part of the workforce works in the hospitality industry and where he achieved a great victory in November.
Trump will need Congress’ approval of tax change, as Republicans have a majority in both chambers.
Former Vice President Kamala Harris, the Democratic candidate for the year 2024, promoted a similar idea during her election campaign.
While he was in Las Vegas, Trump said he would work with members of Congress “in the coming weeks” to ensure the bill reached his office.
“No tax on tips!” Trump said while a crowd of supporters chanting nearby. During the speech, Trump said his administration would also raise workers ’wages, but he did not reveal additional details.
During his speech, Trump welcomed the CEO and head of the American Hotels and Housing Association, Rosana Mayita, on stage, as she talked about the potential impact of the proposal to the service industry.
She said: “I am here to tell you that the American dream is still alive and in good health in the hotel industry today.”
She referred to the tax law that Trump promoted in 2017 during his first administration. Mayita said: “The failure to impose a tax on tipping” depends on this momentum. ” “So, we are very excited to support you in this effort.”
She added that her organization will urge Congress to agree to Trump’s proposal.
However, in June, Trump’s statements have caused criticism from the Cooking Workers Syndicate, which includes the local cooking workers union 226 and the Local Support Syndicate 165. The union represents 60,000 workers in the Las Vegas and Renault regions.
“For decades, the cooking federation for the rights of adulterated workers and against unfair taxes,” Treasury Trend Babajurg said in a statement at the time. “The relief is certainly required for the owners of honor, but Nevada’s workers are smart enough to find out the difference between real solutions and unbridled electoral promises from a convicted criminal.”
President Trump said that he would work with members of Congress to ensure the bill reaching his office.
Mandel Njan / French Press Agency / Getty Imaguz
In a statement to Business Insider on Saturday, Babajurg said: “The cooking union welcomes plans to finish taxes on tipping, but it should not end there.”
He said: “The abolition of taxes on tumors and the end of the minimum wage of $ 2.13 – this is the reality in many states throughout the country – will raise the level of millions of hospitality workers.” “Dealing with both cases is very important to ensure that one job is sufficient for workers to support their families.”
The statement urged the Republicans to communicate and work with Democrats to find solutions.
“Republicans have made promises to reduce the costs of living for the Americans. The fulfillment of these obligations must start with meaningful measures, and they must work with the Democrats to raise the minimum wage, cancel taxes on tumors, and address the greed of companies that lead to high prices.” “On basic commodities such as food, gas and housing,” Babagigeji added. “It is time for Congress to move now to provide real solutions to working families.”
Some experts who follow the industry earlier told the Business Insider that the abolition of federal taxes on tumors may have unintended negative consequences, such as encouraging employers to reduce wages to avoid taxes.
Martha Jamel, Executive Director of the Budget Laboratory at Yale University, told BI that the new system would create “an incentive for employers to try to obtain more compensation for their workers in the form of graphics.”
Jamel said that the proposal can allow business owners to transfer employee salaries to customers and demand tax exemptions by reducing salary fees and social security.
White House representatives did not respond to the Business Insider.
Trump’s speech in Nevada comes one day after his visit to California to treat forest fires that destroyed parts of Los Angeles and other places.
While he was at a round table with California local officials, the president said he would help finance relief efforts, but he did not mention details of the size of federal aid that California could receive.
Trump also said that he would implement an executive order to direct more water from the Sacramento-Sacan Joakin to southern California and the Central Valley.
On Friday, Trump visited North Carolina, where some parts of the state are still recovering from the effects of Hurin.
On Friday, Trump launched a comprehensive reform or the abolition of the Federal Emergency Management Agency, describing it as “great disappointment.”
The president said that his administration is looking forward to mechanisms to enable conservatives when it comes to disaster aid.
