Senate passes Trump budget framework to begin process of ending taxes on tips, overtime and Social Security

[u/HellYeahDamnWrite]

https://nypost.com/2025/04/05/us-news/senate-republicans-pass-trump-budget-framework-after-marathon-vote-session/?utm_source=smartnews&utm_campaign=nypost&utm_medium=referral

[u/Rommel79]

Holy crap. They’re actually doing something?

[u/mdws1977]

That is good. I really like the, “cut taxes on tips, overtime pay and Social Security benefits”, part.

Hope this passes into law soon.

[u/Infyx → u/mdws1977]

Stop taxing social security. If this passes move everyone to salary. 

[u/MoisterOyster19 → u/mdws1977]

No taxes on OT will save me thousands easily. I make like 50-80k in OT alone depending on the year

[u/Rommel79 → u/MoisterOyster19]

That’s a shit ton of OT. I was making $40k in OT at one point and they changed me to salary.

[u/MoisterOyster19 → u/Rommel79]

Yea when you are a first responder it's pretty easy to get OT. Can work 24 hour shifts or 12 hour shifts. So OT stacks quick and can still take plenty of days off. Get a ton of PTO too so I usually go one a few vacations a year as well.

[u/Single-Stop6768 → u/MoisterOyster19]

Seriously. I really hope this part goes through. Would make an immediate difference in my and a lot of other people's lives. Put in all that extra time and effort. It'd be really nice for the government to stop helping themselves to the fruit of the extra effort we all put in.

[u/VeryPokey → u/MoisterOyster19]

20% of my yearly wage is OT. This will by yuge if it goes into effect.

[u/Nectarine-Fast → u/MoisterOyster19]

I hope it’s grandfathered in from the start of the year. I made a killing in OT for Jan/Feb

[u/johndeer89 → u/MoisterOyster19]

The work force is gonna explode!

[u/OnlyInAmerica01 → u/johndeer89]

Why would some morons downvote this comment?? People happily increasing their productivity is...somehow a bad thing?!

[u/johndeer89 → u/OnlyInAmerica01]

Liberals are bregading.

[u/UnstableConstruction → u/mdws1977]

If they cut taxes on tips, my tips are going back to 5-10% where they belong.

[u/s1lentchaos → u/UnstableConstruction]

The idea of being able to give someone money and not have Uncle Sam take a cut makes me happy enough that I've half a mind to tip more.

[u/Trondkjo → u/mdws1977]

Wow for once the top comment here is a good take and not some “here’s why this is bad.” I will enjoy it while it lasts.

[u/mythic_dot_rar → u/mdws1977]

I don't get paid any tips, so I won't be eligible for this tax cut, which makes me really pissed because....

I wish this had happened sooner.

[u/businessbee89 → u/mdws1977]

Libs will read this as: "cut Social security"

[u/aoeu00]

If this fully passes congress, I wonder how this will affect people's current tipping habits (esp with tipflation since during early Covid).

[u/sWo97 → u/aoeu00]

I don’t know of a single person who has ever articulated to me their reasoning for tipping based on taxes.

[u/DRKMSTR → u/sWo97]

Personally, I only tip in cash because I expect them not to report it on their taxes.

Cash is king.

Also tip heavily. Its better to tip big and go out less than go out more.

Seriously, modern culture of always going out to eat is stupid, it used to be once every week or every other week, now it's constant for many. Its unsustainable. 

[u/Infyx → u/aoeu00]

I will 100% tip less. I have to pay taxes on all my income. 

[u/santasnicealist → u/aoeu00]

I've already cut back on tipping (live in Seattle) because of the incredibly high guaranteed wage for employees. Figure this gives a good reason to cut another 30% off the tip since they aren't paying SS or Medicare taxes on it.

[u/Cronamash → u/aoeu00]

People might ease off a little on tipping, but tipped employees would be keeping 15-20% more of their tip money.

[u/Zestycheesegrade → u/aoeu00]

And I wonder if this would include streamers and or OF people? Senate has got to get this right.

[u/roaming_art]

I would have liked to see the deficit down closer to ZERO before tax cuts are put in place. 

[u/PixieDustFairies → u/roaming_art]

But Trump is doing tariffs right now so you want to balance that out with lower taxes in other areas.

[u/LowSlipLowz → u/roaming_art]

The problem isn't with tax collection, it's with spending.

This is what DOGE is currently doing.

[u/Single-Stop6768 → u/roaming_art]

Yea that'll never happen. The beast needs to be starved for spending to ever get cut to a point where the deficit gets knocked down. The government will never willingly cut their spending so long as the taxes can keep flowing.

[u/dunkeater → u/roaming_art]

Trumps previous tax cuts resulted in increased tax revenue, not less.

Economic growth is the best path to reducing the deficit.

[u/Rommel79 → u/roaming_art]

Lowering taxes will help increase receipts. But Congress HAS to pass meaningful spending cuts too.

[u/rasputin777]

Paying taxes on Social Security is one of the most ludicrous fucking things.

"We're going to take this money by force so you can retire. And then we're going to give you a shit-ass return on it. And keep pushing back how old you must be to claim it. Oh, and you have to pay taxes on it. Again."

SSA is one of the worst ideas the US has ever enacted. Let me opt out.

[u/dam4076 → u/rasputin777]

Well the idea is that the money taken for ss as a tax was pre tax.

And if SS is paying that money back to you, it should be taxed. Because if ss didn’t exist, you would have been taxed on the contribution via income tax.

[u/Cockroach-Jones → u/dam4076]

It absolutely should not be taxed. It’s a forced interest free loan to the government (which they then get to collect interest on), not to mention the huge number of people that don’t even live long enough to receive their benefit after contributing for decades. It’s the shittiest 401K in existence.

[u/motram → u/rasputin777]

Paying taxes on Social Security is one of the most ludicrous fucking things.

Everyone's income should be taxed, or no one's.

If people don't pay taxes, they will vote to raise taxes on those that do.

I bet you think disability shouldn't be taxed either? With that and Social Security, you are getting very close to fifty percent of the population.

[u/lady_wolfen → u/motram]

You do know that Social Security does pay out disability benefits too right? Social Security Disability Income.

[u/OnlyInAmerica01 → u/motram]

SS is for our parents and grandparents, the people that built this country. And it's a pittance compared to what they put in. So yah, I have no problem with letting grandma keep a few bucks to help her survive in her old age.

[u/businessbee89 → u/rasputin777]

Ashamed to say, I never knew SSA payments were taxed. That's absolutely fkn ridiculous. Give me that money and let me invest it in an account that I can't withdraw from until I'm 62.

[u/CookingUpChicken]

So if there's no taxes on tips, does that mean your earnings that social security uses to figure out your retirement check mean it will be $0 ? I can see this as a way to try to offload SS

[u/Infyx]

Taxing SSA is stupid. Everything else?  Pay your taxes. 

[u/GeneticsGuy]

The media told me a month ago that Trump had already abandoned this and that all the tip staff in Vegas were regretting their vote... are you saying the media lied, again!?

[u/Zestycheesegrade → u/GeneticsGuy]

It's because the tariffs are front and center of the talk right now. It's the shit storm.

[u/ButterYourOwnBagel]

Can’t wait to see how this is spun as a bad thing 

[u/motram → u/ButterYourOwnBagel]

I mean, it just incentivizes employers to shift more of their payments into tipping and overtime?

There really isn't a rational explanation of why overtime and tipping shouldn't be taxed the exact same as any other income. Why is overtime now exempt, but bonuses are not? All loopholes like this do is encourage creative and additional accounting work.

Trump doing this is just as bad as Biden trying to buy votes by eliminating college loans, it just targets a different group. Is it the end of the world?. No. Does it really make any logical sense? Not really. If you want to lower taxes, lower taxes for everyone, not just the groups that support you politically.

Just my 2c.

[u/Obelisp → u/[deleted]]

Groan. OT and bonuses are never taxed more. There's just more withholding because the normal withholding rate didn't factor them in to begin with.

[u/Unlucky-Prize]

If we cut taxes like that it will be extremely inflationary. We need to offset it probably with more cuts than that if we go there. When you cut to people who will spend it instead of invest it or save it it’s the most inflationary of all. We saw that during Covid with direct stimulus. That’ll be death in the midterms. People won’t care about 15% more take home pay if it comes with 15% more costs.

We just did this with stimmies and ppp. Direct to high spend prosperity consumer stim is the most inflationary. It’ll be financed by debt. And there will be tremendous avoidance on overtime especially with a lot of white collar workers converting. It will reduce tax more than expected and be more inflationary than all the stimulus much of went to overseas fraud or was invested, not spent in the economy.

If we do go this way we probably need to cut $1.50 per dollar in tax reduced for equal impact. These dollars will just be a lot more inflationary.

[u/stevieoats → u/Unlucky-Prize]

[u/Unlucky-Prize → u/stevieoats]

We basically just ran this experiment. It went really badly. 90%+ of these dollars will get spent. They will be financed with more debt. It will be as or more inflationary than PPP and stimmies.

[u/s1lentchaos → u/Unlucky-Prize]

God forbid people get to keep the money they worked for to spend how they like

[u/Unlucky-Prize → u/s1lentchaos]

God didn’t commit us to this scope of wasteful spending.

[u/s1lentchaos → u/Unlucky-Prize]

Quit fucking around pretending to be a conservative when all you wanna do is raise taxes.

[u/Unlucky-Prize → u/s1lentchaos]

I don’t want runaway inflation and very high interest rates. We just got a preview, it’s quite awful.

[u/smp501]

2/3 of our entire federal budget is Medicare, Medicaid, and social security. I’m all for reducing taxes on OT, tips, and all other earned income, but we don’t need to make social security a bigger budget buster than it already is.

[u/PartyOfFore]

The left will read this as ending Social Security, ending overtime, and ending taxes on tips.

[u/Zestycheesegrade → u/PartyOfFore]

They will ask the stupid question. How will we pay back this debt if we're not taking OT taxes, tips and SS taxes? lol

[u/imabetaunit]

“But it’s just to line the pockets of his billionaire buddies.”

[u/crash______says]

Finally some fucking progress in congress.

[u/broyamcha]

when does it go to The House?

[u/Fuzzy_Cuddle]

This is outstanding, but I won’t really believe it until it is signed into law.