Lauren Witzke, a political activist and former Republican nominee for the U.S. Senate in Delaware, said that President Trump's new bill aims to eliminate taxes on tips, overtime, and car loan interest for all Americans. She urged lawmakers to pass the legislation. This statement was made on the social media platform X.
"It's happening Donald Trump's Big Beautiful Bill cuts a lot taxes for every day Americans," said Witzke. "No tax on tips, No Tax on overtime, No Tax on car loan interest. Every American benefits, pass the bill!"
The taxation of employee tips in the United States has been a longstanding aspect of the federal income tax system, with employees required to report tips as taxable income. The Internal Revenue Service (IRS) has specific guidelines for tip reporting and compliance. Recent discussions in Congress have focused on tax relief measures to support working Americans.
According to the Bureau of Labor Statistics, approximately 2.3 million workers in the U.S. reported tip income in 2022, with most employed in the food and beverage industry. Tipped employees earn a base wage supplemented by customer tips, which are currently subject to federal income tax.
A 2023 analysis by the Congressional Budget Office found that eliminating federal income taxes on tips could reduce government revenue by billions annually but may increase take-home pay for low- and middle-income workers. The economic impact depends on legislative details and enforcement.
Witzke was the Republican nominee for the U.S. Senate in Delaware in 2020, receiving 37.9% of the vote against incumbent Chris Coons. She previously worked as a television show host for TruNews and is known for her involvement in conservative political activism.
