Reconciliation bill includes no tax on tips, overtime pay, and car loan interest plus tax relief for seniors and incentives for domestic manufacturing. 

WASHINGTON, D.C. – President Trump promised the American people that working families and Main Street would be at the heart of the Republican economic agenda. The One, Big, Beautiful Bill fulfills that promise: no taxes on tips, no taxes on overtime, no tax on auto loan interest for American-made cars, and tax relief for seniors.

The tax relief package also delivers on key priorities to support domestic investment, manufacturing, and job creation with a return of immediate expensing and 100 percent expensing for new factories, improvements to existing factories, and other production facilities. 

FACT SHEET: President Trump’s Commitment to American Workers

Ways and Means Committee Chairman Jason Smith (MO-08) said: 

“President Trump promised the American people he would deliver relief after four years of skyrocketing prices under President Biden. The One, Big, Beautiful Bill fulfills the promises President Trump made to working Americans hit hardest by inflation: service employees, blue-collar workers, and seniors. The Make It In America expensing provision and no tax on auto loan interest will fuel an American manufacturing boom to create good-paying jobs here at home. These pro-growth, pro-worker tax policies, coupled with permanence of the 2017 Trump tax cuts, will raise wages, boost small business and manufacturing growth, and increase investment in America’s economy.”

REAL-WORLD EXAMPLES: Trump Priorities Save Working Americans Money

A single mother working as a waitress would save $3,410 from no tax on tips and no tax on overtime, in addition to the larger standard deduction, an additional $500 added to the Child Tax Credit, and car loan interest deduction. 

A taxi driver in New Jersey would receive a $1,970 tax cut from multiple Trump priorities: enhanced senior deduction, no tax on overtime, deduction for loan interest for purchasing an American-made car, and the enhanced senior deduction. 

President Trump’s Promises Fulfilled in One, Big, Beautiful Bill

Thanks to President Trump, working Americans will receive new tax relief in addition to permanence of the 2017 Trump tax cuts: 

• No Taxes on Tips: 100% elimination of income taxes on any tipped income for the 4 million tipped workers.
• No Tax on Overtime: 100% elimination of income taxes on the overtime pay premium for the over 80 million hourly workers.
• Tax Relief for Seniors: Middle- and low-income seniors will be able to deduct an additional $4,000.
• No Tax on Auto Loan Interest: The average American family will be able to fully deduct auto loan interest for American-made cars.
• Make it in America: Allows 100% expensing for entrepreneurs and job creators building or improving manufacturing structures and other production facilities in right here at home.