This article has been updated with quotes from the White House as well as House Committee on Ways and Means Committee Chairman Jason Smith (R-MO).
Earlier this week, the House Energy and Commerce Committee passed their budget reconciliation bill, also known as their "big, beautiful bill." On Friday, however, the bill ran into defections from Republicans on the House Budget Committee. Among the defections included Reps. Ralph Norman (R-SC), Andrew Clyde (R-GA), Lloyd Smucker (R-PA), and Josh Brecheen (R-OK).
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President Donald Trump himself promoted the need to advance and pass such a bill on Friday morning from Truth Social.
"Republicans MUST UNITE behind, “THE ONE, BIG BEAUTIFUL BILL!” Not only does it cut Taxes for ALL Americans, but it will kick millions of Illegal Aliens off of Medicaid to PROTECT it for those who are the ones in real need," he stressed, addressing a talking point that Democrats have been issuing fearmongering claims on. "The Country will suffer greatly without this Legislation, with their Taxes going up 65%. It will be blamed on the Democrats, but that doesn’t help our Voters. We don’t need “GRANDSTANDERS” in the Republican Party. STOP TALKING, AND GET IT DONE! It is time to fix the MESS that Biden and the Democrats gave us. Thank you for your attention to this matter!"
Speaker Mike Johnson (R-LA) has also promoted the bill and how it is "checking all the boxes" on Trump’s campaign promises. One of those promises includes no tax on tips, an idea so good that then Vice President Kamala Harris even copied Trump on it during last year's campaign.
This "big, beautiful bill" includes 100 percent elimination of income taxes on any tipped income for the 4 million tipped workers. Deduction is available to both nonitemizers and itemizers for all tips received. There's no limit on the amount of tips, though an earned income limitation will apply. It's also available to W-2 employers and independent contractors, including Uber and Lyft drivers.
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The White House also sent out a press release highlighting Trump's Truth Social post and five reasons why the bill is "a Once-in-a-Generation Chance." The first reason, about how this is "the largest tax cut in American history," includes mention of no tax on tips, as well as no tax on overtime. "It protects Medicaid for Americans by removing 1.4 million illegals," is another reason, which again, really hurts Democrats' narratives. "It makes President Trump’s border security permanent," is another reason, which was a particularly winning issue for Trump for the 2024 campaign, especially following four years of the Biden-Harris administration. "It finally modernizes air traffic control," is still another reason, and one the Trump administration's Department of Transportation has been working on lately. "It ends taxpayer-funded sex changes for minors," is the final reason listed.
The White House also offered a quote to Townhall. "The One, Big, Beautiful Bill delivers on key commonsense pro-worker policies that put Americans first, just as President Trump promised. Americans deserve to take home more of what they earn. You earned your tip- you should keep your tip, and that’s exactly what No Tax on Tips will deliver," said spokesperson Anna Kelly.
The bill is also being handled by the House Committee on Ways and Means. In a statement for Townhall, Chairman Jason Smith (R-MO) also promoted the bill. "The 2017 Trump tax cuts gave a boost to workers. The new 2025 Trump tax cuts will provide even more tax relief by delivering on President Trump’s promises to hardworking Americans. And it provides that relief immediately," he highlighted about these specific provisions, further highlighting benefits. "A single mom waiting tables will no longer owe taxes to the federal government on her hard-earned tips. The linemen who worked countless hours restoring power in the aftermath of devastating natural disasters in places like North Carolina and my home state of Missouri will no longer pay taxes on overtime pay. Seniors, like my aunt who had to take a job as a door greeter at Walmart to supplement her Social Security income after the loss of her husband, will receive much needed tax relief."
The legislation has also earned key outside endorsements, such as from the CEO of Uber and DoorDash cofounder, especially for the inclusion of no tax on tips. Jon Taffer has also communicated his support via Fox News.
We've said from the start: No Tax on Tips should include @Uber drivers & couriers. Grateful the new House Ways & Means bill does just that. Thanks to @POTUS and @RepJasonSmith for backing all tipped workers—no matter how they work. Let’s get this done! https://t.co/QJ5OY2Lv8h
— dara khosrowshahi (@dkhos) May 14, 2025
Thanks to @POTUS and @RepJasonSmith, millions of Dashers may soon get a tax break on their hard earned tips. Following advocacy from 40K Dashers, including dozens in DC last week, the House’s budget bill is an important step in making #NoTaxOnTips a reality. pic.twitter.com/EiMTnMVai9
— Tony Xu (@t_xu) May 15, 2025
🚨 Jon Taffer showers praise on the No Tax on Tips provision in the One Big, Beautiful Bill: "I think it's massive... it's terrific. The industry needs it, the employees need it, and I'm thrilled that @POTUS has even mentioned this policy." pic.twitter.com/WrFETm8DJt
— Rapid Response 47 (@RapidResponse47) May 16, 2025
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