Culinary Union Leader Pushes for Hospitality Worker Changes

President Donald Trump doubled down on his campaign vow to cut taxes on tips at a Las Vegas rally on Saturday. The idea has got people talking, but union bosses, like those from the Culinary Workers Union Local 226, there is a need to think bigger to help hospitality workers.

Trump Proposes Changes to Tip Taxation Amid Union Concerns

Trump shared what sparked his idea mentioning a chat with a waitress who grumbled about taxes on her tips, reported CNN. He promised his fans he would team up with lawmakers to cook up new tax plans, maybe building on the tax cuts from 2017. However, the details of the plan, like whether it would wipe out federal income and payroll taxes on tips, are still fuzzy. Some folks point out that getting rid of these taxes completely could cost the government up to $250 billion over ten years and might muddy the waters for Social Security funding.

In reaction to Trump’s comments, Ted Pappageorge, secretary-treasurer of the Culinary Workers Union, backed the notion of removing taxes on tips but stressed that it does not go far enough to tackle the issues many hospitality workers face. The union, which speaks for more than 60,000 workers in Nevada, pushes to get rid of the $2.13 subminimum wage for tipped employees. This rate common in many states, forces workers to depend on tips to cover their basic living costs.

Pappageorge emphasized that real steps must be taken to make sure one job can support workers and their families. He called for both parties to work together to boost the subminimum wage, get rid of taxes on tips, and address how big companies drive up prices for essentials like housing, food, and gas.

Unions Push for Broader Reforms Alongside Trump’s Tax Idea

Trump’s idea has caught people’s eye, but it also brings up questions about who might gain from it. Numbers from the Budget Lab at Yale University show that many workers who get tips do not make enough to pay federal income taxes, so they would not benefit from not having to pay these taxes. 

For those who do pay federal income taxes, they could save about $1,700 a year by 2026. If they did not have to pay payroll taxes on tips, too, workers could save another $2,100 each year. But this would mean they would get less Social Security money when they retire.

The Culinary Union, a leading labor group in Nevada, keeps pushing for big changes. Its members come from all walks of life – immigrants, women, and people of color. The union speaks up for rules that aim for economic equality in the hotel and restaurant business.

As people talk about Trump’s idea, union bosses are asking Congress to grab this chance. They are pushing for bigger changes that will help tipped workers all over the country live better lives.