LAS VEGAS (FOX5) — President Donald Trump is set to land in Las Vegas for the first time since just days into his second term.
He is expected to arrive at Harry Reid International Airport before heading to downtown Las Vegas. First responders, service workers and business owners are among the guests expected to take part in a roundtable downtown focused on tax cuts, including “no tax on tips,” a policy Trump first promoted in Las Vegas last year.
The policy was enacted in July of last year and is getting added attention as Wednesday is Tax Day.
Business owner reports tax savings
Joel Rottman and his mother started Beauty Society 20 years ago. They say this was a strong tax year for their business.
“It was a great benefit for us to be able to realize them in the 2025 year. And then when it comes to the R&D tax credits, those were immense for us,” Rottman said.
The company started in a garage in Southern California but moved to North Las Vegas years ago. Today, they have about 50 employees.
Rottman said this year’s tax savings helped the business invest in new equipment and leaves more money to be invested back into the company.
“There’s nothing that feels better than being able to like channel tax savings into the business. And this year, we’re able to do so. We bought multiple pieces of machinery that we wouldn’t have bought in previous years because we get to see the tax benefits and that has helped us become more efficient, grow, create more products at a better affordable price. And we’re able to pass that on to our consumers,” he said.
He said tariffs helped drive up costs last year, so they are glad to be feeling some relief.
“It was difficult last year with some of our supplier costs going up, but us being able to make stuff more efficiently, at a better price point allows us to keep our prices stable, which is what we love to do,” Rottman said.
Family sees change in tax return
Melanie Johnston said she has been filing her family’s taxes for the past 25 years. She said her husband works for a delivery company and that overtime is a major part of his pay.
This year, she said that changed their return in a big way.
“I have, honestly, like a big change from between this year and last year,” Johnston said.
She said the difference was at least $4,000.
Hospitality industry says policy doesn’t go far enough
Some in the hospitality industry say the policy does not go far enough, saying the current version leaves out many workers.
“I think that the version that rolled out is missing the mark. I think that there’s a gap, several gaps, and I think the limit is pretty low in terms of what you can deduct. And then also the limitation on being able to claim auto gratuities and service charges as tips, which in most businesses, those are passed directly to the employees and considered tips, but they’re classified differently on tax forms. And so those are excluded,” said Codi Bates, owner and operator of Bates Co.
Bates said auto-gratuities are not included in the credit and believes the policy needs to be expanded to reach more workers across the industry.
“It just needs to be expanded to really hit home the impact and, and make that impact something that, can, can be felt equitably across the industry,” Bates said.
Business owners say they have not yet heard much from their employees about how “no tax on tips and overtime” may have impacted their returns, saying people are still becoming aware of how their tax returns turned out.
Tax results can vary from person to person depending on income, deductions and other factors.
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