Trump’s ‘One Big, Beautiful Bill’ Gets ‘No Tax’ On Tips And Overtime

President Donald Trump is championing a sweeping new tax reform plan that would mark one of the most significant pro-worker tax cuts in U.S. history. Dubbed the “One Big, Beautiful Bill,” the legislation is designed to ease the financial burden on working- and middle-class Americans by eliminating federal income taxes on two major sources of everyday income: tips and overtime.

In a bold statement from the campaign trail, President Trump declared, “We are going to do NO TAX ON TIPS, NO TAX ON SENIORS’ SOCIAL SECURITY, NO TAX ON OVERTIME, and much more.” The proposal reflects Trump’s continued focus on rewarding hard work and ensuring Americans keep more of what they earn.

What’s in the Bill:

• No Tax on Tips and Overtime: Under the proposed bill, service workers and hourly employees would no longer pay federal income taxes on their tips or overtime pay—two income streams that millions of Americans rely on to make ends meet. This is a game-changer for restaurant staff, tradesmen, healthcare workers, and countless others.

• Relief for Seniors: While full elimination of Social Security taxes remains a longer-term goal, the bill would immediately provide an additional $4,000 deduction for middle- and low-income seniors, offering meaningful relief without touching their benefits.

• Auto Loan Interest Deduction: Understanding the rising cost of car ownership, especially in rural and working-class communities, the bill includes a new deduction for interest paid on auto loans.

These changes would be locked in through the end of 2028, aligning with the length of Trump’s second term and giving workers several years of guaranteed tax relief.

Paying for It Without Raising Taxes

To fund the tax cuts, the plan outlines cuts to bloated federal programs that have been draining taxpayer money for years. Areas targeted include green energy subsidies, electric vehicle tax credits, and inefficiencies in Medicaid and SNAP. Rather than grow the deficit, the bill shifts priorities—cutting wasteful spending to deliver direct benefits to hardworking Americans.

Economic Outlook and Legislative Path

The Trump administration expects the reforms to boost consumer spending, increase take-home pay, and revitalize key sectors of the economy. By putting more money into workers’ pockets, the plan aims to stimulate economic growth from the bottom up.

The bill is currently under review in the House, where Republican leadership is aiming to pass it by early July. While some moderates have voiced concern about spending offsets, conservative lawmakers have rallied behind the legislation as a cornerstone of Trump’s second-term economic agenda.

President Trump has called it “the biggest tax cut for middle and working-class Americans—by far.” If passed, this bill will be a defining moment for economic policy in America, once again proving that under Trump, the American worker comes first.