Cracks Emerge in Support for Trump’s Tax-Free Tips, Overtime Ideas

April 24, 2025, 8:45 AM UTC

Divisions are emerging in Congress over making President Donald Trump’s promises to exempt taxes on tips and overtime into law.

Lawmakers are racing to turn the president’s campaign rallying calls into tax policy. While some tax writers smooth out the legislative mechanics to determine eligibility, others say costs are too high and should be set aside for now.

The overtime exemption is proving “controversial in the Senate,” said former Rep. Peter Roskam (R-Ill.), a former tax writer who’s now a partner at BakerHostetler. Some Republicans on the Senate Finance Committee are pressing the White House to “drop it” because ...

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