Donald Trump signed Bill to make tips tax-f
On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act into law,
overhauling the federal tax code. Supporters call it relief for workers,
while critics warn it could add “$3.4 trillion” to the deficit over ten years.
The law permanently extends tax cuts and adds provisions like tax-free overtime,
expanded senior deductions, and making tips exempt from federal income tax.
While tips must still be reported, millions of service workers benefit directly.
Senator Ted Cruz said, “These workers deserve to keep more of what they earn,”
a view echoed by supporters who say it boosts take-home pay without raising wages.
Opponents argue the changes favor certain workers, risk compensation manipulation,
and prioritize short-term gains over fiscal responsibility.
Despite debate, many in hospitality are already seeing higher paychecks.
