LAS VEGAS — No taxes on tips and overtime will likely come to fruition as a major tax policy heads to President Donald Trump’s desk.

The House of Representatives voted 218-214 to approve Trump’s $4.5 trillion tax breaks and spending cuts bill known as the “big beautiful bill” on Thursday after months of negotiations and opposition from Democrats. Trump is expected to sign the bill Friday at 2 p.m.

The legislation, more than 800 pages long, makes sweeping policy changes, including extending Trump’s tax cuts from 2017 and eliminating taxes on cash tips and overtime, completing a major campaign promise of Trump, who first pitched no taxes on tips during a Las Vegas rally.

Federal income tax on cash tips will be deducted up to $25,000 during a taxable year for a period of four years. Tips earned through credit cards would not count, and cash tips could again be taxed after 2028.

The White House’s Council of Economic Advisers estimates that no tax on tips will increase the average take-home pay for tipped workers by $1,675 per year.

Rep. Steven Horsford, D-Nev., introduced amendments to the package to make no tax on tips permanent and define the words “tip” and “tipped work” in an effort to prevent loopholes in the law, but his amendments were unsuccessful.

Nevada’s Democratic members of Congress roundly criticized the bill, saying it will cause more than 110,000 Nevadans to lose their health insurance and add between $3 trillion and $5 trillion to the national debt by making the 2017 tax cuts permanent, though the White House has said economic growth spurred by the bill will actually reduce the national debt.

“There is no spin for the human suffering they’re causing,” Horsford said in a statement. “This is Robinhood in reverse, and Republicans would be wise to remember that they won’t have the last word here – the American people will, on Election Day.”

Republicans, however, say that without this bill, the average taxpayer would see a 22% tax hike.

Gov. Joe Lombardo, a Republican, applauded the bill passage in a Thursday statement, saying Trump’s completed promise of no tax on tips and overtime as a “huge win for hardworking Nevadans.”

“While my administration continues to assess this bill as it moves to get signed into law, Nevadans should be excited about the potential impacts of tax cuts, investments in small businesses and American manufacturing, and efforts to help secure our border,” Lombardo said in the statement.

“The House of Representatives delivered on its promise to rein in out-of-control spending, unleash American energy dominance, drive economic growth, and secure our borders after 4 years of mismanagement under the previous administration,” said Rep. Mark Amodei, R-Nev., in a statement.

Besides implementing no taxes on tips, the reconciliation bill also includes provisions to eliminate taxes on overtime pay, not exceeding $12,500 or $25,000 in the case of a joint return. It also eliminates taxes on car loan interests from 2025 through 2028.

Las Vegas workers had mixed reactions to the news. Some said customers tip often in cash, so it’ll have a larger effect. Others said they receive many tips via credit card, so they won’t see much of a change.

John Hasler, a barber at Downtown Vintage Barbershop, said he receives a lot of cash tips and will see more money saved. If he gives eight $35 haircuts every day and receives a $5 or $10 tip for each one, that adds up, he said.

“A tip is a tip,” Hasler said while giving a haircut to a customer. “I don’t think the government should have been taxing that to begin with, so I’m all for it.”

Crystal Chamberlin, a server at Makers and Finders in the Arts District, said she receives tips mostly through a credit card, so the provision in the bill won’t affect her as much. She also thinks the provision will have to be paid for somewhere else.

“Not being taxed on it, it might help now but I think in the long run we’re gonna be taxed somewhere,” Chamberlin said.

Andrew Mendez, general manager of Atomic Liquors, said his bartenders will definitely have more money in their pocket.

“We’re a pretty cash-intensive bar, so it’ll be a real positive impact for these guys,” he said.

He said it’ll be interesting to see how much more cash is claimed now because everyone feels like they have a safety net. There are people in the industry who don’t claim all their cash tips on their tax forms, so more people could claim cash on tips now, Mendez said.

Mendez also thinks no tax on overtime will help workers in Vegas.

“Any amount, especially right now with how big of a slump the Vegas food and beverage is in in general. Any money that these guys get to keep in their pocket is a good thing,” Mendez said.

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