LAS VEGAS (KTNV) — Nearly two years after President Donald Trump promised “no tax on tips” during a 2024 campaign stop at a Las Vegas restaurant, the owner says the pledge has not provided relief as he battles to keep his doors open.
I visited Il Toro E La Capra to see what has changed for owner Javier Barajas, who also runs four Lindo Michoacán locations in Southern Nevada. Inside the kitchen, lunch prep runs at full speed with fajitas on the grill and servers balancing plates headed to customers. But behind the steady rhythm is a struggle to survive.
WATCH | Las Vegas restaurant owner struggles despite no tax on tips pledge
Las Vegas restaurant owner says no tax on tips promise has not brought relief amid rising food costs
“We are having a hard time right now,” Barajas said.
Trump unveiled his “no tax on tips” pledge at the restaurant before becoming president. Now, Barajas says the promise has not touched the reality he faces.
“It as it is, when he came, it was already hard for businesses. Everything was kinda expensive, but right now… uh… as the time go on… it’s now, I mean, even impossible… almost impossible to keep our doors open,” Barajas said.
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A year ago, Barajas raised prices to match incoming costs. Six months ago, he reversed course and cut prices by about 30 percent, banking on specials to keep customers walking in. The proof of his struggle is in his produce orders.
“Tomatoes used to be $26… I’m talking like six weeks ago… now it’s $65,” Barajas said.
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“Yes, but jalapeños used to be $26 — now it’s 53… bell peppers — the pepper we use for fajitas — it’s $52 a case. The red one, $60,” Barajas said.
“And we cannot raise our prices in our restaurants because as it is, it’s hard for people to go out and eat,” Barajas said.
They’re not the only business feeling a pinch on their wallets — Channel 13 recently spoke to other restaurants facing financial struggles as food prices climb.
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During the president’s visit, I asked Barajas what he hopes to hear to help people in Southern Nevada.
“Well… he knows… he have to know that all the prices are too high… they have to lower the gas prices,” Barajas said.
Because of how expensive things have gotten, Barajas says the “no taxes on tips” policy has not made a difference for his business.
KTNV
“No… it’s even worse now… comparing with the prices… it’s not relief at all,” Barajas said.
“Not just promise and promise… we need action… and right now… before it’s too late,” Barajas said.
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