Oh boy, here we go again with the “Big Beautiful Bill” circus. No tax on overtime and tips, promised by President Donald Trump during his 2024 campaign, might be dead.
Trump’s tax-free tip is a Molotov cocktail wrapped in dollar bills. Supporters call it a long-overdue break for America’s service class but detractors—including members of his own party—say it should be removed from the bill.
Let’s break this down for you before the political spergs comment on it:
Big Beautiful BILL: The Good, Bad, and Ugly
The proposal to scrap income taxes on tipped wages began as a campaign one-liner at a Trump rally in Las Vegas last summer.
Within days, it morphed into a legitimate policy discussion, drawing endorsements from both sides of the aisle. Nevada Senators Catherine Cortez Masto and Jacky Rosen cited the state’s heavy reliance on tourism jobs, while GOP figures like Senator Ted Cruz praised the move as a “pro-worker” tax cut.
No Tax on Tips and No Tax on Overtime are popular 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 bullish for restaurant stocks, yet bearish for your sanity when you realize your bartender makes more than you after tips.
All jokes aside, here’s the most important things inside Trump’s Big Beautiful Bill:
- No tax on overtime: Sounds great until you realize this just means employers will cut base pay and force you to work 60-hour weeks to survive.
- It reduces previously planned Medicaid spending to reduce the previously planned deficit
- It makes Trump’s 2017 tax cuts permanent, which is good (depending on how you look at it).
- It removes income tax only on cash tips, which is kind of a joke. Nobody pays taxes on cash tips already. This just makes it so all those people aren’t technically committing a crime aren’t anymore.
- It reduces income tax on seniors. Limits apply.
- It funds border security with over $45B for the wall (probably enough to cover the entire Southern border) and more ICE agents and Border Patrol.
- It adds a 3.5% tax on remittances (money transfers from USA to overseas) if you don’t provide proof of legal status. Basically a tax that only illegal immigrants will pay.
There are other provisions in the bill like ending some “climate change” tax incentives and giving a tax incentive to buy American-made cars, but this is the major stuff.
The Senate’s Surprise Vote
Senate Budget Committee Chairman Lindsey Graham offered a lukewarm endorsement, suggesting the proposal might be better addressed in a separate bill rather than shoehorned into wider taxation and spending legislation.
“There are some things the president wants, like no tax on tips and overtime, but it may be hard to fit that in completely,” Graham remarked.
The idea of tax-free tips lands well with workers who live shift to shift, but the fine print tells another story.
Eligibility for the policy is capped, payroll taxes will still be there, and exemptions are carved up in a way that could create more confusion than clarity. And come 2028, it all expires unless a future administration chooses to keep it alive.
What’s Next?
As the Big Beautiful Bill Act heads to the Senate, its fate hangs with the GOP. Even so, leadership seems determined to protect the flashiest part of the plan: no taxes on overtime and tips
For millions of service workers, this proposal could represent meaningful financial relief, but it hinges on whether Congress can reconcile the competing priorities in Trump’s sweeping legislation.
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Key Takeaways
- Oh boy, here we go again with the “Big Beautiful Bill” circus.
- No tax on overtime and tips, promised by President Donald Trump during his 2024 campaign, might be dead.
The post No Tax On Overtime or Tips Rejected By Senate. Thanks For Playing appeared first on 99Bitcoins.
