House Budget Plan Doesn’t Remove Tip And Overtime Taxes

Listen To Story Above

Claims about a House budget resolution eliminating taxes on tips, overtime, and Social Security are circulating on social media, but these assertions lack factual support.

The House recently approved a budget resolution that outlines significant tax reductions totaling $4.5 trillion and proposes spending cuts between $1.5-$2 trillion, as reported by The New York Times.

Social media posts have been spreading information suggesting specific tax eliminations. One viral post stated, “BREAKING: The House just voted to pass the budget resolution backed by President Trump, which will include $4.5 TRILLION in tax cuts, such as no taxes on tips, overtime, & social security. The final vote will be 217-216 *if all three remaining Dems vote…”

Then you voted against a bill that exempted working people from overtime pay and tip taxes. You are a complete liar. pic.twitter.com/0JhgQbKgv3

— Edwina Delia (@assifajidan) February 26, 2025

However, these claims misrepresent the actual content of the budget resolution. No major news organizations have reported any specific provisions about eliminating taxes on tips, overtime, or Social Security payments. The New York Times clarified that while the resolution sets a $4.5 trillion ceiling for potential tax reductions over the next decade, it doesn’t specify which taxes would be affected – a complex issue that could require months of deliberation.

The resolution’s language remains broad and non-specific regarding tax changes. It merely states that “Any recommendations on changes in law within the jurisdiction of the Committee shall be consistent with the goals of this concurrent resolution, including with respect to spending reduction, tax policy changes, reforms, or other measures deemed appropriate by the chair of the Committee on the Budget of the House.”

In essence, while the resolution creates a framework for substantial tax cuts, it doesn’t include any explicit proposals about eliminating taxes on tips, overtime work, or Social Security benefits.

‼️ Trump has again called for the abolition of the federal income tax. During his inaugural address, he had proposed eliminating and replacing it with a tariff-based economic system, adding the elimination of taxes on Social Security benefits, overtime pay and tip income. https://t.co/Dah7NzYUe4 pic.twitter.com/7HzuMfWOyU

— Lip 🇺🇸 🇮🇱 (@Lip_OnX) January 28, 2025