Scoop: Trump lays out tax priorities to House GOP

[BumRushDaShow]

Source: Axios

6 hours ago


The White House outlined its tax priorities in a meeting with House GOP leaders on Thursday — a list that includes campaign promises like ending taxes on tips and Social Security benefits, a White House official tells Axios.

Why it matters: President Trump promised that tax cuts would be a centerpiece of his agenda, but the wishlist presented Thursday also includes the closure of some loopholes typically used by the wealthy.

The priorities: Administration officials informed the Republican leaders that they were stressing Trump's "no tax on tips" proposal as well as ending taxes on Social Security benefits and on overtime pay.

Trump is also pushing to renew his 2017 tax cut bill, adjust the SALT cap and to implement tax cuts for goods made in the U.S.

Read more: https://www.axios.com/2025/02/06/trump-no-tax-on-tips-social-security-overtime

[durablend]

1. "also includes the closure of some loopholes typically used by the wealthy"

Either that's going to have some workaround, be removed or the whole thing is DOA

[JBTaurus83]

2. This isn't going to happen.

Also, why should people who make tips be exempt from taxes? I hated this idea when either candidate proposed it. I’m a civil servant, so I have to pay taxes at the regular rate, but bartenders in Vegas for example that already probably make more than me also get that income free of taxes? That doesn’t make sense to me.

[dem4decades]

5. Are year end bonuses considered a "tip"‽

[madinmaryland]

7. No. Just part of your wages.

[Avalon Sparks]

9. Bonuses are taxed higher than wages.

Eom

[madinmaryland]

10. Not that I have seen...

Bonuses I have gotten are taxed at the listed for the bonus based on my pay frequency. i.e,, I get paid biweekly and if my bonus is twice my weekly rate, my bonus may push me into a high lax bracket for that check.

It is quite possible the bonus you are getting is pushing you into a higher tax bracket.

[Avalon Sparks]

12. Strange

Both hub and I receive annual bonuses from commercial companies and the amount withheld is around 30%. For Wages its around 20%.

I think it might also depend on the company.

[Xipe Totec]

16. Bonuses if they arrive near year's end are taxed at the higher tax bracket

Because your earlier income filled out the lower tax brackets already. The tax is the same whether it's regular income or bonus.

[Prairie Gates]

18. Agree so hard...I'm even more annoyed by "No Taxes on Overtime," which is even less justifiable

What, because somebody is an exempt worker, they should pay full taxes while somebody who is non-exempt gets some portion of their income tax free? What? The implication is that exempt workers don't work "overtime" as in outside 40 hours. That, of course, is utter bullshit. The second implication is that non-exempt workers make less money in general. Maybe in general, but it's probably close to a wash.

It's essentially a bribe to trades.

[chicoescuela]

3. I'm going to ask my employer to just tip me every two weeks

Shouldn’t have to pay any income tax or make any more social security contributions
JFC

[LastLiberal in PalmSprings]

11. I once worked as an elephant circumciser at the zoo.

It didn't pay much, but the tips were huge.

[chicoescuela]

14. Ugh

[Blasphemer]

13. Hahaha...I imagine there will be some sort of cap on the amount that is tax exempt.. nt

[CousinIT]

4. Ending taxes on tips & overtime and on social security benefits ARE HUGE CUTS TO SOCIAL SECURITY.

Taxes on social security benefits go back into the trust fund, not into the general fund. The social security trust fund is NOT part of the general fund or the budget. It does not add ANYTHING to the debt or deficit - so cutting it WILL NOT reduce either. Cutting the TAXES on it will however cut social security and render the trust fund unable to pay full benefits much sooner.

Erasing taxes on tips and overtime also reduces money going into Social Security AND IS A CUT TO SOCIAL SECURITY.

THESE ARE ALL BACKDOOR CUTS TO SOCIAL SECURITY. They are trying to sneakily DEFUND Social Security in THREE different ways.

WE NEED TO HOLLER AT DEMOCRATS TO OPPOSE THIS!!! They are trying to DEFUND social security by 1000 cuts so-to-speak.

HELL NO.

[JBTaurus83]

6. Exactly

If they do end any portion of taxes on tips and overtime, they will end the taxes paid into SS/Medicare. They are not going to income tax portion that they can funnel off into tax cuts for the wealthy and business tax cuts.

[Puppyjive]

8. Well this needs to be said

Some of the lower social security beneficiaries are restaurant workers. They need to pay their social security taxes so they can receive more than poverty-rate social security. They typically don't have 401k plans.

[chicoescuela]

15. 100% true

[Rainman4u2C]

19. ?

I'm not on Social Security so I don't know a lot about it so help me out. I pay Social Security taxes now so I am eligible to receive Social Security when I am of retirement age only to pay Social Security taxes again on the money I receive? That doesn't sound right to me.

The no tax on tips and OT thing are 100% BS.

[BumRushDaShow]

20. Social Security IS federally taxable for "income" (depending on how much it is)

That is why a month or so after I started getting it about a year ago, I went to my local SS Office to hand in a W-4V form so they could withhold a specified % of the check which would go towards federal taxes (because no taxes are withheld from the check).



About Form W-4V, Voluntary Withholding Request

Thankfully here in PA, neither my federal annuity nor SS are taxed for income in the state.

[Prairie Gates]

17. Trump wasn't even there

Fuck outta here with this shit, Axios.

You can say "The White House" like you did in the story. Stop pretending Trump can drool out two consecutive coherent sentences about tax policy.