The president first announced his proposal last June during a campaign rally, also in Nevada, where a significant portion of the workforce is in the hospitality industry and where he scored a major victory in November.
Trump would need approval for the tax change from Congress, where Republicans hold majorities in both chambers.
Former Vice President Kamala Harris, the 2024 Democratic presidential nominee, promoted a similar idea during her campaign.
While in Las Vegas, Trump said he'd work with members of Congress "in the coming weeks" to ensure a bill reaches his desk.
"No tax on tips!" Trump said as a crowd of supporters cheered nearby. During the speech, Trump said his administration would also raise worker wages, but did not share additional details.
During his speech, Trump welcomed American Hotel and Lodging Association CEO and President Rosanna Maietta onstage, where she spoke about the proposal's potential impact on the service industry.
"I am here to tell you that the American dream is alive and well in the hotel industry today," she said.
She referenced the tax bill Trump promoted in 2017 during his first administration. "The 'no tax on tips' builds on that momentum," Maietta said. "So, we are so excited to support you in that effort."
She added that her organization would urge Congress to pass Trump's proposal.
In June, however, Trump's remarks drew criticism from the Culinary Workers Union, which includes Culinary Workers Union Local 226 and Bartenders Union Local 165. The union represents 60,000 workers in the Las Vegas and Reno areas.
"For decades, the Culinary Union has fought for tipped workers' rights and against unfair taxation," Secretary-Treasurer Ted Pappageorge said in a statement at the time. "Relief is definitely needed for tip earners, but Nevada workers are smart enough to know the difference between real solutions and wild campaign promises from a convicted felon."
President Trump said he'll work with members of Congress to ensure the bill reaches his desk.
Mandel NGAN/AFP/Getty Images
In a statement to Business Insider on Saturday, Pappageorge said, "The Culinary Union welcomes plans to end taxes on tips, but it must not end there."
"Eliminating taxes on tips and ending the $2.13 sub-minimum wage — that is the reality in too many states across the country — will uplift millions of hospitality workers," he said. "Taking on both issues is critical to ensuring one job is enough for workers to support their families."
The statement urged Republicans to reach across the aisle and work with Democrats to find solutions.
"Republicans have made promises to lower the cost of living for Americans. Delivering on those commitments must start with meaningful action, and they must work with Democrats to raise the sub-minimum wage, eliminate taxes on tips, and address corporate greed driving up prices on essential goods like food, gas, and housing," Pappageorge added. "It's time for Congress to act now to deliver real solutions for working families."
Some experts who track the industry earlier told Business Insider that eliminating federal taxes on tips could have unintended negative consequences, like encouraging employers to lower wages to avoid taxes.
Martha Gimbel, the executive director of Yale University's Budget Lab, told BI that a new system would create "an incentive for employers to try to get more of their workers' compensation in the form of tips."
Gimbel said the proposal could let business owners shift the onus for employee salaries onto customers and claim tax breaks through lower payroll and Social Security fees.
Representatives for the White House did not respond to a request for comment from Business Insider.
Trump's speech in Nevada comes one day after he visited California to address the wildfires that have devastated parts of Los Angeles County and elsewhere.
While at a roundtable with local California officials, the president said he would help fund relief efforts but did not detail how much federal aid California could receive.
Trump also said he would implement an executive order to direct more water from the Sacramento-San Joaquin Delta to Southern California and Central Valley.
On Friday, Trump also visited North Carolina, where some parts of the state are still recovering from the impacts of Hurricane Helene.
Trump on Friday also floated overhauling or eliminating the Federal Emergency Management Agency, calling it a "big disappointment."
The president said his administration was eyeing mechanisms for potentially empowering governors when it comes to disaster aid.
Thousands of firefighters are battling the Palisades Fire, one of several burning around Los Angeles County.
Jason Armond/ Los Angeles Times/Getty Images
Wildfires are burning across Los Angeles County.
Hundreds of thousands of people are under evacuation orders or warnings.
Insured losses could top $20 billion, JPMorgan analysts estimated — the most-ever in California.
The Los Angeles area is battling a series of massive wildfires that continue to rip through its picturesque mountains and hillsides — creating a hellscape of burned-out neighborhoods and upended livelihoods that could ultimately be the most costly fire disaster in California history.
Authorities on Friday night expanded the evacuation zone related to the largest blaze, the Palisades Fire, east toward Santa Monica, less than 1.5 miles from the iconic Santa Monica Pier. The zone now encompasses the famous Getty Center, home of the Getty Museum.
Officials have now ordered over 153,000 residents to evacuate and warned another 166,000 to be ready to leave if the fires continue to spread. About 38,000 acres have burned. Officials have reported 13 deaths related to the fire as of Saturday.
At a press conference on Friday evening, officials managing the Eaton fire, which now spans over 14,000 acres and is one of the largest and deadliest, said they did not expect the blaze to spread significantly over the weekend due to more moderate wind conditions. However, officials said they are anticipating another high-wind event early next week. It was strong Santa Ana gusts of up to 90 miles per hour that first whipped the fires into a frenzy earlier this week.
JPMorgan analysts said the blazes tearing through the region could lead to over $20 billion in insured losses — and about $50 billion in total economic losses. That would make these conflagrations "significantly more severe" than the Camp Fires that struck the state in 2018 and racked up $10 billion in insured losses, the current record.
The Los Angeles skyline in the distance, surrounded by smoke and haze on Thursday morning.
Mario Tama/Getty Images
Los Angeles District Attorney Nathan Hochman described the scene in LA as apocalyptic, as thick bands of smoke surrounded the city. Los Angeles County is home to about 10 million people.
"Not since the 1990s, when Los Angeles was hit with the fires, the flood, the earthquake, and the riots, have I seen such disaster occur here in our city," Hochman said at a briefing, referring to the Northridge Earthquake and the disturbances in the wake of the Rodney King verdict.
Erroneous emergency alerts telling residents to evacuate areas unaffected by the fires further heightened panic in the region. Kevin McGowan, the director of the Los Angeles County Office of Emergency Management, apologized for the messages at Friday's conference.
"There is an extreme amount of frustration, anger, fear, with regards to the erroneous messages that have been being sent out through the wireless emergency alert system. I can't express enough how sorry I am for this experience," he said.
He reassured residents that resolving the issue is his "top priority" and that he has technical specialists working to identify the root cause. "I implore everyone to not disable the messages on your phone," he said.
Starlink, Elon Musk's SpaceX subsidiary that provides satellite internet service, said Thursday that people in the Los Angeles area can use the company's network to text loved ones, contact 911, and receive emergency alerts.
Gov. Gavin Newsom on Saturday announced that he's doubling the number of California National Guard personnel on the ground to 1,680 members.
"The men and women of the California National Guard are working day and night to help Los Angeles residents during their greatest time of need," he said in a statement.
Here's a look at the latest happenings in the main fires spreading throughout the area:
Palisades Fire
Beachfront homes are destroyed by the Palisades Fire.
Brian van der Brug / Los Angeles Times via Getty Images
The Palisades Fire in the Pacific Palisades area north of Santa Monica was the first fire to strike the region on Tuesday morning. It has spread to over 21,500 acres, according to the California Department of Forestry and Fire Protection. Around 11% of the fire is contained, it says.
Five people have died in the Palisades fire, according to the medical examiner's office.
Los Angeles City's Fire Chief Kristin Crowley said at a press briefing earlier this week that the Palisades Fire had damaged or destroyed over 5,300 structures.
Crowley would not confirm reports that the fire started in a resident's garden, saying the origin is still under investigation.
On Thursday, a drone hit the wing of one of two Super Scooper planes fighting the wildfires, Los Angeles County Fire Chief Anthony Marrone said at a Friday press conference. He said the plane was under urgent repairs and set to be flying again by Monday. "If you fly a drone at one of these brush fires all aerial operations will be shut down," he said.
Eaton Fire
A man walks past a fire-ravaged business after the Eaton Fire swept through on Wednesday.
AP Photo/Ethan Swope
The second-largest fire in Los Angeles County is the Eaton Fire, which started on Tuesday evening in the Pasadena-Altadena area at the foothills of the Angeles National Forest.
Eight people have died in the Eaton fire, Los Angeles County Sheriff Commander Tania E. Plunkett said at a press conference on Saturday afternoon.
The blaze has spread to over 14,100 acres, Marrone said at the Saturday conference, adding that over 7,000 structures have been damaged or destroyed and 15% of the fire is contained.
The cause of the fire remains "unknown," Marrone previously said.
Hurst Fire
The Hurst Fire burned in the hills above the Sylmar area of Los Angeles on Wednesday.
Myung J. Chun / Los Angeles Times via Getty Images
The Hurst Fire, which began late on Tuesday night in the northern part of the San Fernando Valley, spread to 799 acres and is 76% contained, per Cal Fire.
In an X post on Thursday afternoon, Los Angeles Mayor Karen Bass said the mandatory evacuation order for the Hurst Fire had been lifted.
Kenneth Fire
On Thursday, a small brush fire erupted at the Victory Trailhead near the border of Los Angeles and Ventura counties. Marrone said that the fire had been stopped. It burned just over 1,000 acres, but no structures were reported damaged. It is 80% contained, per Cal Fire.
A mandatory evacuation order was issued for several neighborhoods near the fire.
LAPD said it had detained a possible arson suspect but could not confirm any connection to the fire.
An evacuation notice intended for residents impacted by the Kenneth Fire was mistakenly sent out across LA County due to a "technical error," County Supervisor Janice Hahn said in an X post.
Sunset Fire and others
Firefighters halted the forward progress of the Sunset Fire in the Hollywood Hills.
Jason Armond / Los Angeles Times via Getty Images
The Sunset Fire broke out in the Runyon Canyon area of the Hollywood Hills on Wednesday evening, quickly spreading to scorch over 40 acres and threaten major LA landmarks.
All evacuation orders related to the Sunset Fire were lifted as of 7:30 a.m. Thursday, she added.
A large structure fire consumed two large homes in the Studio City area but firefighters were able to stop its forward growth at just one acre and prevent another brushfire, Crowley said.
Yet another fire, the Lidia Fire, started Wednesday afternoon in Acton near the Antelope Valley, about 20 miles northeast of the San Fernando Valley. It consumed 395 acres but is now 100% contained, according to CalFire.
The Woodley Fire, which began Wednesday morning in the southern part of the San Fernando Valley, has been suppressed and there are no current threats, Crowley said.
Patrols were monitoring the area for any flare-ups, she added.
Events canceled and landmarks closed as smoke chokes LA
Major and minor events alike have been canceled or postponed across the Los Angeles area as the city battles the fires.
The 30th Annual Critics Choice Awards, set for Sunday night, were rescheduled for January 26. A National Hockey League game between the Los Angeles Kings and the Calgary Flames, scheduled for Wednesday night at Crypto.com arena, was postponed. The LA Lakers rescheduled Thursday night's game.
Music venues across the city were also canceling or postponing their shows, including The Troubadour, The Wiltern, The Echo, the Kia Forum, Walt Disney Concert Hall, and others.
Flights into and out of LAX, Hollywood Burbank Airport, Ontario International Airport, and Santa Ana's John Wayne Airport were also experiencing delays and cancellations. LAX, however, remains open.
The fires are also shuttering tourist destinations in and around Los Angeles, which attracts nearly 50 million visitors a year.
The fires forced some Los Angeles-area landmarks to close, including the Hollywood sign, the Los Angeles Zoo, the Broad Museum, the Norton Simon Museum, the Getty Villa and Getty Center, Universal Studios Hollywood and Universal CityWalk, and the Griffith Observatory.
Airbnb told CNN that it would be allowing refunds for bookings in areas affected by the wildfires, following a viral social media post from a customer who said the company refused to offer her a refund.
California already struggled with an insurance crisis
Experts told Business Insider that prices are likely to continue rising for those who can still get insurance.
"I've seen numbers go up 200%, 300%, even 500% in a year," Nick Ramirez, the owner of a California insurance agency, told BI.
And as the fires' estimated damages already climb into the billions of dollars, some homeowners will have to rebuild without the help of insurance payouts.
