Two of President Donald Trump’s major tax-related campaign promises that will impact millions of American workers have made it into legislation proposed for the so-called “one big, beautiful bill,” albeit only for a period that would not last beyond his second term.
“No Tax On Tips” and “No Tax On Overtime” appear in a 389-page measure released by the House Ways and Means Committee on Monday, with provisions saying the deductions would expire at the end of 2028.
Another of Trump’s priorities, no tax on auto loan interest, made it into the legislation.
Trump had also been pushing for an end to taxes on Social Security for seniors, however Bloomberg reported that it could not be included due to the “special budget process that Congress is using to advance the tax package.”
Instead, the measure has a section that would allow middle-and low-income seniors to deduct an extra $4,000 for each taxable year.
With a post on Truth Social last week, Trump said, “We are going to do NO TAX ON TIPS, NO TAX ON SENIORS’ SOCIAL SECURITY, NO TAX ON OVERTIME, and much more. It will be the biggest Tax Cut for Middle and Working Class Americans by far, and it is time for Main Street to WIN.”
House Republicans are leading the charge in devising the bill after Congress approved a budget framework last month. The budget reconciliation process they are using will allow the Senate, with its narrow GOP majority, to bypass the three-fifths majority threshold for overcoming a filibuster.
Other significant aspects of the bill are coming together, including a plan to raise the debt limit by $4 trillion and retaining key tax cuts from 2017, but the granular details of some provisions could be changed as the legislation moves forward.
While Republicans continue to clash over certain tax breaks and spending, Democrats are focused on warning the proposal could result in millions of Americans losing their health care coverage.
In a post on Truth Social on Monday, Trump said Republicans need to “UNIFY” behind Ways and Means Chairman Jason Smith (R-MO) and the other GOP leaders whose panels are meeting this week to mark up their respective measures for the “one big, beautiful bill.”
Trump also suggested the legislation, in addition to a new executive order to lower drug prices and incoming money from tariffs, will help usher in “The Golden Age of America.”
His administration hopes the bill is done by the Fourth of July.
