U.S. Politics and Inflation
At a Las Vegas event President Trump promoted a 'no tax on tips' proposal and downplayed inflation linked to the Iran war, even as forecasts now project the U.S. will have the worst inflation among G7 countries in 2026. (nytimes.com) (finance.yahoo.com) Separately, residents and environmental groups sued over plans for a 175‑mile border wall in Big Bend, alleging environmental protections were improperly bypassed. (ktep.org)
President Trump used an April 16 event in Las Vegas to sell tax cuts for tipped workers even as new forecasts point to faster U.S. inflation in 2026. (whitehouse.gov) (finance.yahoo.com) The White House posted video of the Las Vegas remarks under the banner “Tax Week,” and Trump has made “no tax on tips” a signature pitch to service workers in Nevada, where casino and restaurant jobs carry political weight. The White House says the broader tax package has already been signed into law and promotes a calculator for “No Tax on Tips & Overtime.” (whitehouse.gov 1) (whitehouse.gov 2) The economic backdrop has shifted since January, when Trump said at Davos that his administration had “defeated” inflation. Yahoo Finance, citing Organisation for Economic Co-operation and Development forecasts published in March, reported the United States is now projected to post 4.2% inflation in 2026, the highest rate in the Group of Seven. (finance.yahoo.com) (oecd.org) The International Monetary Fund said on April 14 that the war in the Middle East threatens the recent drop in global inflation and that higher defense spending and geopolitical shocks can push prices up further. The Organisation for Economic Co-operation and Development made the same point in March, warning that prolonged disruption to Middle East exports could raise energy prices and broaden inflation pressures. (imf.org) (oecd.org) That leaves Trump arguing two tracks at once: tax relief for workers in Las Vegas and patience on prices as war-driven energy costs rise. Yahoo Finance reported Brent crude moved above $100 a barrel early in the conflict, then swung lower and higher again after ceasefire talks faltered on April 13. (finance.yahoo.com) A separate fight is unfolding 800 miles away in West Texas, where residents and environmental groups sued over a planned 175-mile border wall in the Big Bend region on April 16. KTEP reported the plaintiffs include a river guide, a church preservation group and a national advocacy organization that say the administration illegally bypassed environmental laws. (ktep.org) Customs and Border Protection says its “Smart Wall” program is funded through H.R. 1 and combines steel bollard barriers with roads, cameras, lights and other detection technology. The agency’s map says it updates project status weekly and lists hundreds of miles of new primary wall, secondary wall and waterborne barriers across the southwest border. (cbp.gov 1) (cbp.gov 2) The Big Bend suit follows earlier changes to the administration’s own border-wall map. KTEP reported in March that projects around Big Bend National Park appeared on a February 27 version of the map and were later removed without public explanation, leaving local residents unsure what would actually be built. (ktep.org) Both disputes now turn on the same test for Trump’s second term: whether promises aimed at workers and border voters can hold up as inflation forecasts worsen and wall construction moves into court. (finance.yahoo.com) (ktep.org)
