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Trump Pitches Tip and Overtime Tax Breaks in Las Vegas as Prices Squeeze Voters

High gas costs tied to the Iran war are dulling the refunds the White House is touting.

Overview

  • Trump, who holds a Las Vegas roundtable Thursday, is promoting last year’s Working Families Tax Cuts that pause federal taxes on some tip income and change how overtime pay is taxed through 2028.
  • The White House says tens of millions claimed the new breaks this filing season, and Treasury reports the average refund topped $3,400, up about $340 from last year.
  • The “no tax on tips” rule lets eligible workers exclude up to $25,000 in tip income from federal income tax, though payroll taxes still apply and the benefit phases out for higher earners.
  • Gas prices have climbed to about $5 a gallon in Las Vegas, with AAA citing a 28% jump from a year ago as the Iran war lifts fuel costs and eats into gains for service workers who drive to casino and hospitality jobs.
  • Republican strategists warn their majorities are at risk as Trump’s recent controversies overshadow the message, and officials say any pump-price relief depends on Iran negotiations, with Treasury’s Scott Bessent forecasting $3 gas sometime this summer if talks succeed; Trump heads to Phoenix on Friday.