Las Vegas servers see tip tax relief erased by tourism slump

After three decades serving diners in Las Vegas, Aaron Mahan expected to benefit from Donald Trump’s “No Tax on Tips” pledge, which lets workers deduct up to $25,000 of tips from federal taxable income through 2028. Instead, a 7.5 % plunge in visitor numbers—the largest drop since 1970 outside the Covid era—has cut his monthly earnings by $2-3 000. The decline is linked to Trump’s confrontational stance toward allies, especially Canada, whose tourists have reduced travel after new tariffs.

Mahan’s casino restaurant, once open around the clock, has laid off roughly 20 staff and now operates a morning-only buffet, limiting his interaction with patrons and causing a 75 % loss in tips. The Culinary Union, representing 60,000 Nevada hospitality workers, says many members are now out of work or seeing hours slashed. Treasury data shows over 7.5 million Americans used the tip deduction this year, averaging a $7,000 claim, but the benefit is muted for those whose base wages have fallen. Mahan, a former Trump supporter, says he may vote Democratic in the upcoming election.