Economists and tax experts say the money returned to the worker may be nominal and would not be the best way to help families. The median individual income in the Las Vegas region is roughly $50,800, and many of those workers depend on tips, according to Andrew Woods, director of the Center for Business and Economic Research at UNLV.

Nevada is one of seven states without a sub-minimum wage option for tipped workers. Silver State workers earn at least $12 per hour, while other states allow employees to pay their workers as low as $2.13 hourly if they earn tips on the job.

Woods said for many, their earnings and the tax credits they qualify for result in more tax returns than tax bills.

“I don’t know if, long term, the majority of people would even see the benefit,” Woods said. “They might see initially in terms of what they take home, but at the end of the year, when it all evens out, they might not see any gain.”

He also said he’s concerned the policy would discourage employers from paying fair wages. Customers may react negatively to increased emphasis on tips at a time of high inflation and discussions of the extent of tipping culture.

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