Culinary Workers Union Local 226 Secretary-Treasurer Ted Pappageorge said organized labor will not be kind to Republicans if federal legislation exempting tips from federal income tax fails in Congress.
“Republicans made a lot of promises [and] we’re going to hold their feet to fire on this,” Pappageorge said last week on the day two bills were introduced in the House and Senate that would fulfill a pledge President Donald Trump made while campaigning in Las Vegas last summer.
According to my Nevada Independent colleague Gabby Birenbaum, the state’s two Democratic senators, Catherine Cortez Masto and Jacky Rosen, signed on to the No Tax on Tips Act that was reintroduced by Sen. Ted Cruz (R-TX), while Rep. Steven Horsford (D-NV) signed on to a House version.
Pappageorge, whose union represents some 60,000 Strip and downtown nongaming employees, said Congress also needs to raise the subminimum wage above $2.30 per hour, which would also help tip earners who are sometimes making that low wage on the expectation they will make up the difference in tips.
“The Republicans wanted [this] as part of their platform to lower the cost of living for working-class voters,” Pappageorge said. “One of the first steps should be no taxes on tips with increasing the subminimum wage.”
