The Tipped Income Debate: Harris vs. Trump in Battleground Nevada
Kristie Strejc, a unionized bartender in Reno, Nevada, shows support for Vice President Kamala Harris over former President Donald Trump, despite proposals to exempt tipped income from federal taxes. In a state with a tip-heavy hospitality industry, the impact of such proposals remains debated, with local economists and union leaders expressing skepticism.
Kristie Strejc, a seasoned unionized bartender in Reno, Nevada, has unwavering support for Vice President Kamala Harris, irrespective of the competing economic proposals by presidential candidates to exempt tipped income from federal taxes. Strejc's stance is emblematic of a broader sentiment in Nevada's hospitality-dominant economy.
While both Harris and Trump have proposed tax exemptions on tipped income to sway voters, the impact of these initiatives on Nevada's economy and its working-class remains a contentious issue. "It's a working-class voter issue," Ted Pappageorge, the secretary-treasurer of the Culinary Workers Union, remarked, emphasizing the complexities beyond mere tax exemptions.
However, local economists argue that the proposed exemptions would have limited effects. David Schmidt, Nevada's chief economist, pointed out that tipped income constitutes a minor portion of the state's annual wages. Meanwhile, union supporters, such as Rocelia Mendoza, remain skeptical of Trump's ability to deliver while rallying behind Harris.
(With inputs from agencies.)