Republicans Pass Budget Bill That May Lead To No Tax On Tips, Social Security, Or Overtime

Americans may be one step closer to having no tax on tips, Social Security, or overtime pay.

On Tuesday (February 25), House Republicans passed a new budget resolution in a narrow 217-215 vote. NPR reports that all House Democrats and only one Republican voted against the bill.

NPR states that the now-passed resolution has established the “framework” for a multi-trillion dollar plan to address policy in areas such as defense, energy, immigration, and taxes.

Specifically, the resolution calls for an increase in funding to secure the country’s southern border. It also calls to raise the nation’s debt limit by $4 trillion.

This resolution’s passage is one of the first steps in what NPR describes as “a lengthy and difficult path in passing the party’s policy priorities.” The Senate already has their own budget plan they’ve been working on. But now, both the House and the Senate need to pass the same bill to make continued progress.

Was The “No Tax On Tips” Bill Enacted?

As the House prepared to vote on the resolution, there was a lot of buzz about eliminating tax on tips, Social Security, and overtime pay. So, were these policies enacted?

The short answer…no. However, the passage of this resolution has laid the groundwork for such policies to be enacted later.

As NPR explains, the new budget plan calls for $4.5 trillion in tax cuts over the next ten years. Those cuts include proposals President Donald Trump campaigned on in 2024, including no taxes on tips, Social Security, or overtime.

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