ADVERTISEMENT
On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act, a major tax overhaul that permanently extends previous tax cuts and introduces new measures, including tax-free tips and overtime pay, as well as deductions for seniors. The law affects millions of service workers—servers, bartenders, hotel staff, and delivery drivers—who can now keep more of their gratuities, though regular wages and mandatory service charges remain taxable.
Supporters argue the change helps financially vulnerable workers without burdening employers, while critics warn it favors tipped employees over others, could encourage reliance on tips, and adds $3.4 trillion to the federal deficit over ten years. The bill also raises broader debates about fairness, budget priorities, and long-term fiscal impacts.
ADVERTISEMENT
