Overview

• The House narrowly passed a GOP budget resolution on February 25, 2025, laying the groundwork for President Trump's $4.5 trillion tax cut plan over the next decade.
• While Trump has repeatedly promised to eliminate taxes on tips, overtime pay, and Social Security benefits, no specific provisions for these measures were included in the resolution.
• The resolution provides a framework for spending and revenue but does not establish any binding laws or detailed tax policies.
• Extending Trump's 2017 tax cuts would consume most of the proposed $4.5 trillion tax cut limit, leaving limited room for new tax relief measures like the 'no tax on tips' plan.
• Critics have raised concerns about the fiscal impact of eliminating taxes on tips, estimating a potential revenue loss of over $100 billion in the next decade.