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Trump's Tax Plan: Overtime Pay and Tips Deductions Proposed

6/20/2025

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Summary

Story summary

President Trump's bold proposal to scrap federal income taxes on tips and overtime pay is stirring excitement in Congress. The One Big Beautiful Bill Act promises to empower millions of workers by allowing them to deduct their reported income. However, the Senate and House are at odds, with higher earners facing phased-out deductions. Changes could roll out between 2026 and 2028.

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Story summary

President Trump's bold proposal to scrap federal income taxes on tips and overtime pay is stirring excitement in Congress. The One Big Beautiful Bill Act promises to empower millions of workers by allowing them to deduct their reported income. However, the Senate and House are at odds, with higher earners facing phased-out deductions. Changes could roll out between 2026 and 2028.