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Trump Touts Tip and Overtime Tax Breaks in Las Vegas

High gas prices linked to the Iran war are blunting the refunds story Republicans hoped would shore up their midterm standing.

Overview

  • At a Thursday roundtable in Las Vegas, Trump promoted “no tax on tips” and “no tax on overtime” to local service and public-safety workers at the AC Hotel.
  • Treasury and the White House report that more than 53 million filers used at least one new provision this season, including over 6 million who claimed the tips deduction, and the average refund topped about $3,400.
  • The law lets eligible workers deduct up to $25,000 in tips and up to $12,500 in overtime, and the benefit phases out for higher earners and ends in 2028.
  • Gasoline near $5 a gallon in Nevada after the Iran war’s supply shock has eroded the value of bigger refunds, with analysts saying higher fuel costs can offset the tax gains for months.
  • Nevada Gov. Joe Lombardo did not appear publicly with Trump, and Republican strategists say the war’s economic fallout is raising fears about holding House and Senate majorities in November.