Trump says tip tax proposal began with Las Vegas server: "How are you doing, everything good?"

President Donald Trump has traced his proposal to reduce federal taxes on tips to a Las Vegas server, a plan he introduced at a Nevada campaign event in June 2024 and later incorporated into a broad law covering taxes, safety-net cuts and immigration enforcement that he signed last year, according to the AP. The policy is central to the competitive race in Nevada’s 3rd Congressional District, a top Republican target as the GOP tries to retain its House majority, where Republican Marty O’Donnell faults Democratic Rep. Susie Lee for voting against the law. Lee says she opposed cuts to Medicaid, food aid and health care and notes the tip-related tax break expires in 2028; she supports a separate permanent version. Nevada has the highest share of tipped workers, but a drop in tourism has lessened the policy’s impact, AP reports.