Trump Pushes New Bill to Eliminate Taxes on Tips and Overtime
In a major legislative push, the White House has unveiled what it’s calling “The One, Big, Beautiful Bill,” a proposal that aims to deliver immediate financial relief to millions of working Americans by eliminating federal taxes on tips and overtime pay.
Promoted as a fulfillment of two of President Trump’s key campaign promises, the bill is framed as a direct effort to support hardworking Americans “where they need it the most — their paychecks.” The proposal comes at a time when wage growth has struggled to keep pace with inflation for many lower and middle-income workers.
The bill would:
- Eliminate federal income tax on tipped wages, benefiting service industry workers such as servers, bartenders, and hospitality staff.
- Remove federal tax on overtime earnings, boosting take-home pay for hourly workers who put in extra hours.
Supporters argue the measure would increase worker morale, incentivize productivity, and reduce the financial burden on employees who rely on variable income. Critics, however, may raise concerns about potential impacts on federal revenue and the broader tax structure.
As the bill heads to Congress, it’s expected to spark intense debate over tax equity, economic stimulus, and working-class relief. Regardless of political leanings, the proposal clearly underscores a renewed focus on pocketbook issues as the nation looks ahead to the next election cycle.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
