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Two decades into her career as a unionized bartender in Reno, Nevada, Kristie Strejc enjoys job stability, favorable shifts, and a steady income – making her indifferent to the proposals of both U.S. presidential candidates to exempt tips from federal income tax. Strejc, who is firmly backing Vice President Kamala Harris in the upcoming election, sees the tipped-income exemption as a potential bonus rather than a deciding factor in her vote.

The competing economic proposals put forth by Harris and former President Donald Trump, including ideas like tariffs and tax exemptions for tips and overtime pay, aim to appeal to different voter demographics. However, in Nevada – where the hospitality industry heavily relies on tips and comprises a significant portion of the workforce – the proposal to exempt tips from taxes has elicited a mild response.

While the cost of implementing these proposals may be substantial, with estimates of a $1.7 trillion reduction in government revenue over a span of years, the impact in Nevada may be relatively limited. David Schmidt, chief economist for the Nevada Department of Employment, Training, and Rehabilitation, estimates that only a small percentage of annual wages in the state come from tips.

The Culinary Workers Union Local 226 and Bartenders Union Local 165, key players in Nevada’s political landscape, have endorsed Harris and are actively mobilizing their members to support her candidacy. Despite Trump’s proposal for a tax exemption on tips, the union remains focused on broader issues affecting working-class voters, such as below-minimum wages for tipped workers and assistance for low-income families.

While both candidates have offered tax-related incentives to boost the economic standing of low-wage workers, experts suggest that alternative measures like minimum wage adjustments or tax credits may be more effective. Economists caution against the tipping exemption as a standalone solution for improving the financial well-being of workers, highlighting that it may benefit only a small percentage of taxpayers.

In Nevada, where the hospitality industry plays a significant role in the economy, the proposal to exempt tips from taxation has not garnered significant attention. While some workers like Rocelia Mendoza, an assistant server in Las Vegas, express a desire for increased earnings, others like Mike Bosma, a certified public accountant in Reno, view the proposal as a political strategy rather than a substantive economic solution.

As the election nears, the debate over tax exemptions for tipped income continues to be a topic of discussion among voters in Nevada. However, for many like Strejc and Mendoza, the issue of taxation on tips is just one factor in a larger decision-making process centered around candidates’ broader economic policies and platforms.

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