Donald Trump has pledged to eliminate taxes on tipped earnings for hospitality workers if he becomes president. Speaking at a rally in Las Vegas, he addressed the issue that has been a point of contention for years. He stated: "We're going to do that right away first thing in office because it's been a point of contention for years and you do a great job of service — you take care of people." The tax-cut pledge is seen as a move to win over swing-state voters in Nevada. Under current law, all gratuities that workers receive must be taxed at the same rate as their regular income, and many employers report their workers’ tips to the IRS — but much is paid in cash and never reported to the IRS. The agency considers cash and noncash tips as income subject to federal income taxes, as well as Social Security and Medicare taxes. In 2018, the latest year for which complete IRS data is available, the average worker who had tips reported on their W-2 had $6,249 in tips that were taxed.