No Tax on Tips: A Temporary Victory and a Future Test

By｜Nevada Chinese Perspective

This past summer, one of the most eye-catching developments on Capitol Hill was the “No Tax on Tips” provision. For service workers—restaurant servers, beauticians, casino dealers, hotel staff—jobs that define daily life in Nevada, this policy means no longer having to pay federal income tax on their hard-earned tips. For many families, it is more than just a few hundred dollars saved. It represents a measure of stability and a recognition of dignity.

But this victory comes with an expiration date. The current rule is only a four-year temporary measure, set to lapse in 2028. Whether it becomes a permanent part of the tax code depends on the “No Tax on Tips Act”, which the Senate has already passed unanimously. The problem is that in the House, the bill remains stuck in the Ways & Means Committee with no hearing scheduled. The future of tax-free tips is, for now, uncertain.

Where Does the Resistance Come From?

First, the “fiscal burden” excuse. The so-called argument of “fiscal burden” serves as a main pretext for many lawmakers. Permanent exemption on tip income would indeed reduce federal revenue, but compared with the large-scale corporate tax cuts passed in recent years, the loss from tip taxation is negligible. Placing “fiscal discipline” at the forefront is more of a strategic deflection—using what appears to be a sound rationale as a way to justify indefinite inaction.

Second, the battle over “fairness.” Some voices within and outside the Democratic Party argue that exempting tips functions as a tax deduction that benefits middle- and higher-income earners more. Others worry it distracts from deeper structural issues, such as persistently low base wages. Politically, these arguments may sound reasonable, but in practice they risk undermining their own position. The reality is that most workers who rely heavily on tips are far from affluent. Their right to have tip income exempt from taxation should come first. To oppose it in the name of “fairness” while ignoring their lived circumstances only weakens the foundation of support.

Third, concerns over execution. The Treasury Department and IRS have already published a preliminary list of “customarily tipped occupations,” but the final rules are still being refined. How to define “regularly tipped,” how to report income accurately, and how to prevent under-the-table practices are all legitimate technical questions. Yet they are not strong enough reasons to indefinitely delay legislation.

Fourth, the politics of the agenda. The House juggles countless priorities. Without strong outside pressure, even policies that appear universally beneficial can get shunted aside by issues deemed more urgent—only to resurface in a scramble as the 2028 sunset approaches.

Why “Now” Matters

Legislation is a marathon, not a sprint. By the time a bill is formally on the calendar, positions are often hardened, and the marginal impact of public opinion diminishes. Raising the profile of permanent tax relief for tips early—before it reaches the floor—offers the best chance to push for hearings, shape the narrative, and keep debates focused on workable details rather than on inflated fears about deficits.

More importantly, this is not just a sterile tax matter. In Las Vegas and across Nevada, Chinese and Asian American communities make up a visible share of the service workforce. In occupations such as casino dealers, their numbers are significant—widely recognized in the industry, even if official statistics often aggregate them into the broader “Asian” category. For these families, the policy outcome will directly shape household budgets and financial security. That makes it not only a general economic question, but also a matter of community equity.

How to Make Your Voice Heard

Reaching out to your Representative is neither daunting nor complicated. A phone call, an email, or a brief visit to a district office is often enough to ensure your opinion is logged. You don’t need to give a speech. Introduce yourself as a constituent, state clearly that you support making tip income permanently tax-free, and add one concrete detail about your situation—how much of your income comes from tips, or what losing the exemption after 2028 would mean for your family. Authentic, personal stories carry more weight than abstract arguments.

If you are unsure which district you live in, go to the official House website: house.gov/representatives/find-your-representative, By entering your ZIP code, you can confirm your Representative. In Nevada, there are four: Dina Titus (NV-1), Mark Amodei (NV-2), Susie Lee (NV-3), and Steven Horsford (NV-4). Your Representative’s office should always be the first to hear from you. And if you and colleagues coordinate to contact them in the same week, the issue’s priority level in the office rises quickly.

Conclusion

The No Tax on Tips policy is pragmatic politics. It may not be perfect, but it delivers immediate relief to thousands of working families. Its ultimate fate will not be decided solely by legislative fine print or partisan bargaining on Capitol Hill. It also depends on whether ordinary people are willing, right now, to pick up the phone, write that email, or walk into an office and make their voices part of the record. For service workers, for **casino dealers**, and for the Chinese American community, this is a step both necessary and urgent.