Nevada Democrats, who have tried to frame President Donald Trump’s “No Tax On Tips” policy as being bad for the working class, are ramping up their efforts as midterm season comes into view.
The state, which is a major hospitality hub and home to the Las Vegas strip, has more tip-earning workers than any other state in the country. More than 5% of the state’s workers are tipped workers.
The state’s Democratic caucus in the U.S. House and Senate has been critiquing the One Big Beautiful Bill’s implementation of the policy throughout the year, and is staying the course as they move into the midterm campaign season.
In August, Sens. Catherine Cortez Masto (D-NV) and Jacky Rosen (D-NV) and Reps. Dina Titus (D-NV), Steven Horsford (D-NV), and Susie Lee (D-NV) wrote a letter to Treasury Secretary Scott Bessent sounding the alarm over the “no tax on tips” provision of the OBBB.
“This proposal closely models legislation introduced or cosponsored by Nevada lawmakers in both the House and Senate,” the Nevada democrats wrote. “Given our work on proposals related to Section 70201, we would like to highlight the following issues for the Department of Treasury in order to ensure the successful implementation of this provision for our constituents and tipped workers across the country.”
They hoped to make sure the Treasury counts auto-gratuities in the provision, includes joint returns which have at least one partner fling with their social security number, and takes “a broad reading of traditionally tipped occupations” to ensure all tipped worker can access the benefit. They also raised concerns about the “temporary nature” of the proposal, as it is set to sunset in 2028.
Months after the OBBB passed the chambers of Congress, Nevada Democrats are railing against the policy in the bill for not going far enough.
In September, Lee said she supports a “No Tax on Tips” policy that “Lets you deduct ALL your tips,” “Eliminates the subminimum wage,” and “Does not expire after 2028.”
“Too bad the Big Bullsh*t Law doesn’t include any of this. It overpromises and underdelivers for working families. That’s why I’m pushing to pass the TIPS Act to bring REAL relief for Nevadans,” Lee wrote on X in September.
Horsford’s TIPS Act, which he introduced in early 2025 and has championed before, is what Nevada Dems are arguing for. Horsford called the GOP’s “no tax on tips” policy a “a half-baked handout—not a real solution,” in July.
Ahead of the midterm elections, Horsford has been following the 2025 Democratic playbook focused on affordability. Lindsay Reilly, a spokeswoman for the Democratic Congressional Campaign Committee, echoed this playbook to Politico.
“D.C. Republicans are giving temporary crumbs to working families,” Reilly said. “Meanwhile, millions of families are at risk of losing their health care, hundreds of hospitals could close, and countless Americans could lose their jobs — all to pay for permanent tax cuts for billionaires.”
But Nevada’s Republican congressman, Rep. Mark Amodei (R-NV) is championing the OBBB “No Tax on Tips” policy ahead of the midterm elections. He held a tax roundtable in Nevada’s capital city in August to discuss “how the OBBB’s pro-growth tax reform will drive economic momentum for small businesses and working families” in his district, as he wrote on X.
Following his vote in favor of Trump’s hallmark OBBB, he pointed to the “No Tax on Tips” policy.
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“While the talking heads will try to have you believe that the One Big Beautiful Bill Act is only a handout to the wealthy, the truth is this historic piece of legislation was crafted with everyday, working-class Americans and their families at the forefront,” Amodei said in a statement.
On Nov. 3, 2026, each Nevada house seat will be up for reelection, while neither of the state’s senate seats is up for reelection.