The solution to the house's budget budget does not reduce taxes to tips, overtime or social security. Here is the reason

On February 25, 2025, the US representative house almost adopted a household solution, a document that represents a blueprint for the government's expenditure.

After completing the resolution (archived) circulated (archived) online (archived) that it contained tax cuts for income from tips, overtime and social security. The Snopes readers also sent us to ask for these claims.

(X user @ryan_in_mi)

An X user wrote:

No taxes on tips

No taxes on overtime

And no taxes on social security

Trump did it.

Democrats wanted them to continue to steer.

Many (archived) claims (archived) showed allegations that the Democrats were against this policy because all Haus democrats voted against the budget decision.

While the House of Representatives passed a household resolutions, this resolution did not provide funding for federal authorities or changes to tax law. Therefore, it was and could not control and could not abolish taxes on income from tips, overtime or social security.

At that time it followed that the Democrats did not vote against these measures “against”, but against the budget solution supported by Republicans as a whole.

Legislators will now begin to design and propose invoices in order to achieve the goals set in the household solution. These invoices could include taxes on income from tips, overtime or social insurance, as these were all campaign problems for President Donald Trump.

At the time of this letter, however, these taxes did not change due to the household resolutions of the house from February 2025.

The solution promised extensive savings, but did not make any specific plans

The Budget Office of the Congress, an impartial facility that provides for analyzes to support the congress budget process, defines a household solution as the following (our emphasis):

A household solution is basically a blueprint to lead congress measures to budget laws in the course of the year. It does not provide funding for federal programs or changes to tax law; Rather, it sets overall expenditure and sales goals, sometimes for up to 10 years. A household solution is not a law because it is not signed by the president. It is put into force when it is approved by both congress houses.

The changes in online claims – no tax on income from tips, overtime work or social security – laws must be changed.

At the time of this letter, there were at least three bills that suggested the removal of taxes on income from tips, but no one had become a law.

The promise of budget solution included a savings goal of 2 trillion dollars for mandatory expenses over the next 10 years. Mandatory expenses are trained from the existing laws, for example the law on social security that has set a system of retirement advantages and advantages for other endangered groups.

Trump promises could be realized in later budget calculations

Trump mentioned for the first time to abolish taxes as an election promise during a rally in Las Vegas on June 9, 2024. He said (at 31:40):

This is the first time that I said that, and for these hotel employees and people who receive tips, you will be very happy, because when I get to the office, we will not raise taxes for tips, people who give tips. We won't do it, and we will do this immediately, first in office because it has been a dispute for years and years, and they do a great service, they take care of people and I think something that is really deserved.

The President repeated the promise during a rally on January 25 in Las Vegas after his inauguration (at 21:41).

During a rally in Tucson, Arizona, on September 12, 2024 (at 1:05:25 a.m.) there was a promise to abolish the tax at overtime. Trump said:

Today I also announce that we will end all taxes at overtime as part of our additional tax cuts. Do you know what that means? Remember, remember to remember. This gives people more incentive to work. There is a lot of easier to get people.

The tax on social security was also a campaign problem for Trump. On July 31, 2024, the then candidate published in his social network of truth: “Seniors should not pay tax on social security!”

Since then, the Republicans have shown that they intend to honor this promise of campaign by introducing a draft law that has an effect in the House of Representatives. Thomas Massie, the Republican of Kentucky, who introduced the legislation, was the only Republican in the house that voted against the budget solution on February 25.

The next step in the budget process is that legislators in the House of Representatives and the Senate have designed and agreed the invoices in order to implement the plans in the budget decision into reality. It remains to be seen which Trump campaign promises it through this process and the law.

While the household decision does not make any specific changes to tax income by social security, its high savings goals for mandatory expenses have led to requirements that Medicaid could be made. We have also reported claims that the budget decisions comprise 880 billion US dollar cuts in Medicaid.

Sources