Culinary Union Secretary-Treasurer Ted Pappageorge told The Nevada Independent that although he supports the idea of “no taxes on tips,” the Trump administration’s execution is flawed.
“The few things that were done for working class families are temporary, while the billionaires get their windfall tax credits permanent,” Pappageorge said in an interview.
Pappageorge said the majority of Culinary workers will benefit from the $25,000 deduction, but the megabill, with its cuts to services such as health care, will likely end up hurting workers more than benefitting them. It's also notable that the tip exemption only applies to the federal income tax, meaning workers would still owe payroll taxes on their tips.
Meanwhile, the Treasury has to finalize the details of how the policy will play out — including what professions are eligible for the deduction.
“We're going to have to pay a lot of attention to that,” Pappageorge said.
Those concerns resonated with Culinary Union members. Sebastian Espinoza, a 31-year-old busser at Caesars Palace, said in an interview with The Indy that he believes the policy — especially the sunset clause and $25,000 cap — could have been better thought out.