LAS VEGAS — Waiter Aaron Mahan, who has worked in the Las Vegas restaurant industry for over three decades, says Donald Trump’s “No Tax on Tips” policy has done little to offset the financial challenges he faces amid a sharp decline in tourism. Despite benefiting from the tax deduction, Mahan reports a significant decrease in his earnings, attributing much of the loss to fewer visitors and reduced tipping opportunities.
Las Vegas experienced a 7.5 percent drop in tourist numbers last year, marking the steepest decline outside the COVID-19 pandemic period since records began in 1970. Industry observers link this downturn in part to tensions stemming from Trump’s foreign policy, including tariffs that have alienated Canadian visitors, a key demographic for the city’s hospitality sector. Additionally, many American households are curbing discretionary spending due to persistent inflation and increased oil prices, factors connected in part to the ongoing US-Israeli conflict with Iran.
Mahan describes the current economic situation as a “Trump slump.” At the casino restaurant where he works, operations have been scaled back from 24-hour service to a morning buffet model with limited staff, resulting in his position shifting from table service to behind-the-counter work. He estimates he has lost about 75 percent of his tipping income, which has traditionally formed a substantial part of his compensation.
The Culinary Union, representing 60,000 hospitality workers in Nevada, confirms that many members have faced layoffs or reduced hours. Ted Pappageorge, the union’s secretary-treasurer, criticized the effectiveness of Trump’s tax policy, arguing that without tips, the benefit offers little relief. “If you’re not making the tips, what good is the tax credit?” he said.
Trump’s “No Tax on Tips” initiative, part of his 2024 campaign platform, allows workers to deduct up to $25,000 of tips from their federal taxable income through 2028. The US Treasury reports that more than 7.5 million Americans claimed the deduction this year, with an average reduction of around $7,000. Analysts suggest the policy contributed to Trump’s Electoral College win in Nevada and that the Republican Party hopes to leverage this support in the upcoming midterm elections.
At a recent rally in Nevada, Trump touted his economic track record, asserting that his first term featured the “greatest economy in the history of our country,” though only about 30 percent of Americans currently approve of his handling of economic matters.
Meanwhile, service workers on Fremont Street, known as the site of Las Vegas’s original casinos, report ongoing struggles due to reduced visitor numbers and inflation. Bartender John Felipe noted a significant drop in Canadian tourists following tariff impositions and said he personally did not see meaningful benefits from the “No Tax on Tips” policy.
Mahan, once a Trump supporter in 2016 and 2020, did not vote in the 2024 election and now leans toward supporting Democrats in the upcoming polls. “I’m still a Republican,” he said, “just not a Trump Republican.”