Despite no tax on overtime and no tax on tips being priorities of President Donald Trump that he promised on the campaign trail, Senate Finance Committee Republicans are increasingly looking to scale back these provisions in order to reduce the deficit, Politico reported on Tuesday.
The House version of Trump’s “big, beautiful bill” would restore tax incentives for research and development, business equipment and debt interest through 2029, which the president has signaled that he backs. But Senate Republicans are intent on making them permanent, which would likely add hundreds of billions in debt to the legislation.
To offset that, the senators are considering watering down other tax provisions they consider less “pro-growth” — such as no taxes on tips, no taxes on overtime and tax relief for seniors. These provisions were all promised by Trump on the campaign trail but would cost some $230 billion, according to the Joint Committee on Taxation.
However, House Ways and Means Chair Jason Smith, R-Mo., who was the architect of the House-passed tax legislation, warned senators about challenging Trump’s wish list.
“I think that the United States Senate will not want to scale down the president’s priorities. No tax on tips, no tax on overtime are two of his top priorities,” Smith told reporters. “Are there some tweaks that they can do to it that I would recommend? Yes, and I have recommended.”
But some Senate Republicans who sit on the finance committee have remained adamant about their views, with Sen. Thom Tillis, R-N.C., for example, telling Politico that “no tax on overtime” should be rewritten to ensure it applies only to people working more than 40 hours a week.
White House spokesperson Abigail Jackson insisted that “no tax on overtime and no tax on tips are presidential priorities that 80 million Americans voted for in November,” adding that “they will remain in this historic piece of legislation in order to deliver the largest tax cut in history.”
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