Las Vegas, Nevada - Donald Trump launched a campaign to cut taxes on tips for waiters, taxi drivers, and more – but the initiative had an unexpectedly bad hidden consequence on the overall wages for service workers.

After more than 30 years in the Las Vegas restaurant industry, waiter Aaron Mahan ought to be pleased about Trump's much-touted "No Tax On Tips" policy.

Unfortunately for this one-time supporter of the US president, the small gain he eked out on his tax return has been dwarfed by the drop in income as tourist numbers plunge.

"I'm currently making probably $2-3,000 less (per month) than I was before," the 53-year-old told AFP.

Robert F. Kennedy Jr. RFK Jr. faces calls to be criminally investigated over alleged lies to Congress

"It's been harder for me to make ends meet with a much lower salary."

Las Vegas, a byword for gambling and excess, last year saw a 7.5% fall in the number of visitors – the largest drop outside of the Covid pandemic since the Las Vegas Convention and Visitors Authority began keeping records in 1970.

Observers say Trump's frequent outbursts against allies have deterred foreign tourists, especially Canadians, who are boycotting the US over the massive tariffs he has imposed on America's northern neighbor.

Add to that the cutbacks that many American households are making as they grapple with stubborn inflation – caused in part by rising oil prices as a result of the US-Israeli war on Iran – and Sin City feels altogether a lot less busy.

Tips make up a significant portion of the income for millions of servers, housekeepers, taxi drivers, and hairstylists across the US.

Trump's 2024 election pledge of "No Tax on Tips," which he said was inspired by the struggles of a Las Vegas waitress, allows for the deduction of up to $25,000 in tips from federal taxable income through the end of 2028.

More than 7.5 million Americans took advantage of this provision this year, claiming an average deduction of $7,000, according to the US Treasury.