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Candidates say taxes on tips will go away, but seeing is believing, union leader says

Both major party candidates for president have shown support for a reform on how tip-earners are taxed.
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LAS VEGAS (KTNV) — The highest-ranking official with the powerful Culinary Union in Nevada says he hopes there's a change in how tips are taxed, but he admits there's a long way to go before that would happen.

"We're a long ways away from something happening," said Ted Pappageorge, secretary-treasurer of the Culinary Union, which has about 60,000 members in the Silver State. "But now there's a bill in the Senate and a bill in the House in (Washington) D.C., the issue is there really isn't much support for that."

WATCH: Ted Pappageorge shares full thoughts on the proposal and some other ways he thinks the issue should be handled.

Culinary Union shares thoughts on 'no tax on tips' proposal

The topic of eliminating taxes on tips has, at times, taken center stage in the heated U.S. presidential race. Former President Donald Trump, the Republican nominee, first talked of making the change during a campaign stop in Las Vegas in June, and Vice President Kamala Harris, the candidate on the Democratic side, followed with a pledge of her own here in the valley earlier this month.

But experts have said eliminating federal taxes on tips would be a difficult process, leading some to believe the issue is more bark than bite.

Details have been sparse and neither candidate's team has said whether it would exempt tips only from income taxes, only from payroll taxes, or both.

Pappageorge said he's pleased about all the talk of ways to help working people keep more money in their pocket, but he wants to wait and see what happens with the promises.

"It is a big deal that Vice President Harris said what she said because she's got an actual program to go after price gouging, big food companies, big oil and Wall Street landlords," Pappageorge said. "Folks like Donald Trump and all these big corporations aren't paying taxes at all, under her program, they'd have to pay taxes. That would be instead of going after working families and their tipped income."

In a swing state like Nevada, one that has a lot of service workers who earn tips, the issue is sure to be talked about more on the campaign trail.

For Jessica Gerst, owner of Head 2 Toe Grooming, a men-centric salon in Spring Valley, she thinks tips shouldn't be taxed.

"I don't think it has anything to do with her business, people just want to give you a gift," she said. "I don't think that being taxed on a gift is appropriate."

As the presidential campaign rolls on, it's very likely the topic will continue to receive press attention. That will likely pick up again with Trump's scheduled visit to Las Vegas on Friday.

The Associated Press contributed to this story.