Nevada governor joins chorus endorsing removing federal tax on tips

Gov. Joe Lombardo (R-NV) said he is in favor of not collecting federal tax on tips workers make, after former President Donald Trump brought the issue to light at a campaign rally in June.

Nevada boasts a robust service industry and has the highest concentration of waiters and waitresses in the United States, according to the Bureau of Labor Statistics. The abundance of tipped workers in the Silver State has made the policy popular, with Lombardo telling KLAS-TV he supports a federal ban on taxing tips.

“Nevadans in the service industry work hard to provide exemplary service to customers and to provide a great quality of life for their families — and they deserve to keep every tip they’ve earned,” Lombardo told the outlet. “I support a federal ban on taxing tips, and I look forward to Nevadans benefitting from keeping more of their hard-earned dollars in their pockets.” 

Lombardo is the latest state official to join the crusade against taxing tips. Sens. Jacky Rosen (D-NV) and Catherine Cortez Masto (D-NV) endorse the No Tax on Tips Act, which would fully exempt tipped wages from being taxed under federal income tax statutes. Culinary Union Local 226 also endorsed efforts to not tax tips last month.

Trump brought the proposal to the national stage during a June rally in Nevada and has credited the policy proposal idea to a waitress he encountered prior to the campaign speech.

Removing a tax on tips would require Congressional action, along with the signature of the president.

The proposal by Trump is an appeal to Nevada, which voted against him in 2016 and 2020, but did vote for Lombardo over former Democratic Gov. Steve Sisolak in the 2022 election. Lombardo’s 2022 win was one of the few successful races where a Democratic incumbent was ousted by a Republican challenger that cycle.