Trump Pushes for Tax Cuts on Tips, Overtime, and Social Security Benefits

President Trump calls on Congress to approve sweeping tax reforms aimed at boosting workers' take-home pay and addressing inflation pressures.

President Trump proposed eliminating federal taxes on tips, overtime pay, and Social Security benefits during his address to Congress on March 5, 2025.
The tax cuts are part of a broader agenda to provide financial relief to workers and retirees, with Trump emphasizing their importance for incentivizing extra work and supporting low-income earners.
Economic analysts estimate the proposed changes could reduce government revenue by up to $5 trillion over the next decade, raising concerns about fiscal sustainability.
Critics warn that exempting tips and overtime pay from taxes could lead to wage restructuring, potential tax loopholes, and limited benefits for non-tipped or lower-income workers.
The proposals currently lack specific policy language and face uncertain legislative prospects, with debates ongoing about their economic impact and fairness.