LAS VEGAS (AP) 鈥� President is betting that the tax cuts will resonate with voters in Las Vegas, where he intends to highlight a key Republican message for this year鈥檚 elections in remarks Thursday.
Workers who earn tips and overtime are seeing , but those savings and others resulting from the 鈥淥ne Big Beautiful Bill Act鈥� that Trump signed last year have been eaten away .
The president鈥檚 rare trip out West comes as Trump faces growing political and focus on a message that helps his party as they try to defend their congressional majorities in November鈥檚 midterm elections. Trump insisted before departing from the White House for Las Vegas that gas prices were 鈥渘ot very high鈥� compared with what he thought they would be because of the Iran war.
On Friday, Trump will hold an event in Phoenix with conservative political group Turning Point USA. But his first stop is in Las Vegas where he will hold a roundtable with several police officers who have benefited from new , along with a barber and a casino pit supervisor, who got to claim the new .
The Treasury Department said Wednesday that the average tax refund this year has been over $3,400, up about $340 from a year ago.
Vegas, once known for affordable living, feels economic pain
Trump has said he first conceived of his 鈥渘o tax on tips鈥� in Las Vegas, is the financial lifeblood and many workers depend on gratuities from visitors.
But it鈥檚 also a city of commuters, including the tipped workers who drive to their jobs at glitzy casinos. Gasoline is averaging $5 a gallon in Las Vegas, up 28% from a year ago, according to AAA.
Nicholas Delaney, an airline attendant who lives in the Las Vegas suburb of Henderson and said he did not vote for the president in 2024, said he thinks Trump is doing a 鈥渢errible鈥� job when it comes to the cost of living. He thought the tax break for tips was a good policy, but is concerned about the cost of groceries and gas.
鈥淚 gotta spend over $100 for a full tank of gas, 13 gallons? Crazy,鈥� Delaney said.
Paula Goodman, a bartender in a Henderson casino, said the cost of living is her biggest concern right now, adding that she spends more than $400 a week on groceries for her family.
But Goodman, who voted for the president, said she thought he is 鈥渄oing a pretty good damn job,鈥� and doesn鈥檛 blame him for high gas prices, which she portrayed as just a fluctuation. As a bartender, she said she personally appreciated the tax savings on tips she brings home.
鈥淓very little penny nowadays is, like, huge,鈥� she said. 鈥淵ou鈥檝e seen diesel, right? $6.11.鈥�
Tax refunds are offset by gas prices
The White House said Trump is focused on tax cuts, deregulation and boosting U.S. energy production to drive down prices, and describes high gas prices as a temporary disruption from the war in Iran.
鈥淭ens of millions of Americans are benefiting this tax season from the president鈥檚 signature provisions鈥� in the tax law, said White House spokesman Kush Desai, saying that shows 鈥渉ow the administration hasn鈥檛 lost focus on delivering on our affordability agenda at home.鈥�
Even so, the conflict has made things less affordable. The Bank of America Institute looked at its deposit and spending data and in a Tuesday analysis concluded that 鈥渢he average increase in tax refunds could cover the average increase in gasoline spending for at least five months.鈥�
Kathy Bostjancic, chief economist at Nationwide, the insurance and financial services company, said last week in an analysis that 鈥渢he steep rise in gasoline prices looks likely to completely offset the increased tax funds windfall with households,鈥� stressing that the money back would likely prevent a sharper drop in consumer spending.
Trump’s economic message focusing on the tax breaks has also been drowned out this week by distractions from the president himself, who angered even some of his own supporters when he got into a public fight with the pope and posted a now-deleted image on social media depicting himself as Jesus.
GOP strategist Ron Bonjean said among Republicans, 鈥渢he frustration and concern is growing every week about whether or not we will be able to hold onto the House this November.鈥�
It takes a lot of repetition for a message like promoting the tax bill to break through to voters, but Trump鈥檚 tendency to drift into other subjects can dilute that, Bonjean said. Trump, as 鈥渁 hoax,鈥� and 鈥渃on job鈥� from Democrats, has to acknowledge the economic realities people are facing now if he wants to help his party this November, Bonjean said.
鈥淗e absolutely has to talk about his plan to bring down high gasoline costs, or else he鈥檚 lost his own message. It won鈥檛 be credible just to talk about no taxes on tips,鈥� Bonjean said.
When will gas prices come down?
While the president has said he thinks the war with Iran will end soon, a deal to resolve it has not yet emerged, with the U.S. and Iran still proffering stances that are far apart.
Trump on Sunday said in a Fox 草莓传媒 Channel interview that gas prices 鈥渃ould be the same or maybe a little bit higher鈥� by the November midterms.
By Wednesday, in another Fox 草莓传媒 interview, Trump walked back that comment. 鈥淚 think they’ll be much lower鈥� before the election, on the assumption the war will be long over.
鈥淲hen that鈥檚 settled, gas prices are going to go down tremendously,鈥� Trump said.
Hours later at the White House, Treasury Secretary Scott Bessent was less rosy, predicting that gas prices will fall sometime this summer, depending on how the negotiations with Iran go.
鈥淚鈥檓 optimistic that sometime between June 20th and September 20th, that we can have $3 gas again,鈥� Bessent told reporters.
Joe Spica, a Democratic candidate for the state legislature and a steward of The Culinary Workers Union, which represents about 60,000 hospitality workers in Las Vegas and Reno, said Las Vegas workers are feeling belt-tightening that is happening all over, because that means fewer visitors to Las Vegas, and fewer tips for workers.
鈥淪omething has to change, and it has to change fast,鈥� Spica, a bellman at the Cosmopolitan of Las Vegas, said at a news conference Thursday organized by the union and the Nevada Democratic Party.
鈥淭he policies of this administration are hurting Las Vegas,鈥� he said.
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Associated Press writer Josh Boak in Washington contributed to this report.
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