#BREAKING: President Trump’s One Big Beautiful Bill, which includes NO TAX ON TIPS, has officially PASSED the House Budget Committee

In a major legislative development, former President Donald Trump’s “One Big Beautiful Bill” — a sweeping economic and tax proposal — has officially passed the House Budget Committee. The bill, a cornerstone of Trump’s second-term agenda, includes a headline provision that would eliminate federal taxes on tips, a move hailed by some as a win for service industry workers and derided by others as a political stunt with costly implications.

Key Elements of the Legislation

Dubbed “One Big Beautiful Bill” by Trump himself, the legislation bundles together a range of conservative economic priorities. Among its most talked-about features is the complete exemption of gratuities — such as those received by restaurant servers, bartenders, hairdressers, and other tipped workers — from both federal income and payroll taxes.

Other notable provisions include:

• Making the 2017 Trump tax cuts permanent, which would extend lower individual and corporate tax rates.
• Increased defense and border security funding, a nod to Trump’s longstanding focus on national security and immigration enforcement.
• Spending reductions to social programs, including projected cuts to Medicaid and other safety net services, although many of these changes would be delayed until after 2029.
• Regulatory rollbacks and new incentives for small businesses.

The bill is being advanced through the reconciliation process, allowing it to bypass a potential Senate filibuster and pass with a simple majority if it reaches the upper chamber.

A Win for Tipped Workers?

The “no tax on tips” provision is already generating significant buzz. Trump has promoted it as a direct benefit to millions of Americans working in hospitality and service industries, who often rely on gratuities to supplement lower base wages.

“Every hardworking waiter, waitress, and service worker deserves to keep 100% of their tips,” Trump said in a recent rally. “We’re ending the unfair tax on tips — period.”

Supporters of the measure argue it would immediately boost take-home pay for service employees, helping workers in low-wage sectors offset the rising cost of living.

However, critics warn the policy could have unintended side effects. Labor advocates have expressed concerns that eliminating taxes on tips could lead employers to avoid raising hourly wages, relying instead on customers to make up the difference. Others caution that removing the IRS from tip tracking could invite widespread underreporting and tax evasion.

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