No Tax On Overtime or Tips Dismissed By Senate. Thank You For Participating
Oh goodness, here we go once more with the “Big Beautiful Bill” spectacle. The absence of taxation on overtime and tips, which President Donald Trump promised during his 2024 campaign, may be on its last legs.
Trump’s tax-free tip concept is a volatile mix packed in dollar bills. Supporters view it as a long-overdue reprieve for America’s service industry, while opponents—including members from his own party—argue for its exclusion from the bill.
Let’s clarify this before the political enthusiasts weigh in:
Big Beautiful BILL: The Good, Bad, and Ugly
The idea to eliminate income taxes on tips began as a catchy remark at a Trump rally in Las Vegas last summer.
In just a matter of days, it evolved into a serious policy conversation, gaining support from both major parties. Nevada Senators Catherine Cortez Masto and Jacky Rosen referenced the state’s heavy dependence on tourism jobs, while GOP leaders such as Senator Ted Cruz hailed the initiative as a “pro-worker” tax reduction.
No Tax on Tips and No Tax on Overtime are trending no-brainer policies.
The Big Beautiful Bill is the largest working and middle class tax cut in history. pic.twitter.com/8XvO4JpYQq
— Alex Pfeiffer (@Pfeiffer47) June 10, 2025
No tax on TIPS or overtime is uptrend for restaurant stocks, yet downtrend for your mental health when you discover your bartender earns more than you in tips.
Setting jokes aside, here are the critical points in Trump’s Big Beautiful Bill:
- No tax on overtime: Sounds fantastic until you realize this essentially means employers will lower base wages and require you to work 60-hour weeks to make ends meet.
- It cuts previously planned Medicaid spending to alleviate the prior deficit
- It enshrines Trump’s 2017 tax reductions, which can be positive (depending on your perspective).
- It eliminates income tax solely on cash tips, which is somewhat ironic. Most people already avoid taxes on cash tips. This just ensures that those individuals are no longer technically breaking the law.
- It decreases income tax for seniors, subject to limits.
- It allocates over $45B for border security funding (likely enough to cover the entire Southern border) and increases ICE agents and Border Patrol personnel.
- It imposes a 3.5% tax on remittances (funds sent from the USA to overseas) unless proof of legal status is provided. Essentially a tax that only undocumented immigrants will bear.
There are other elements within the bill, such as eliminating certain “climate change” tax benefits and introducing a tax incentive for purchasing American-made vehicles, but these are the main points.
The Senate’s Surprise Vote
Senate Budget Committee Chairman Lindsey Graham gave a tepid endorsement, suggesting that the proposal might be better suited for a separate bill rather than being crammed into broader taxation and spending legislation.
“There are some requests from the president, like no tax on tips and overtime, but it may be challenging to fully integrate that,” Graham commented.
The notion of tax-free tips resonates with workers who rely on tips for income; however, the small print reveals a different reality.
Eligibility for the policy has its limits, payroll taxes will remain, and exclusions are sliced in such a way that could lead to more confusion than clarity. By 2028, it all lapses unless a future administration opts to renew it.
What’s Next?
As the Big Beautiful Bill Act moves to the Senate, its destiny rests with the GOP. Nonetheless, leadership appears set on preserving the most eye-catching element of the plan: no taxes on overtime and tips.
For millions of service industry workers, this proposal could signify substantial financial relief, but its success depends on whether Congress can navigate the conflicting objectives presented in Trump’s extensive legislation.
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Key Takeaways
- Oh goodness, here we go once more with the “Big Beautiful Bill” spectacle.
- The absence of taxation on overtime and tips, which President Donald Trump promised during his 2024 campaign, may be on its last legs.
The post No Tax On Overtime or Tips Rejected By Senate. Thanks For Playing appeared first on 99Bitcoins.
