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Wasn't tax on the tips for tips adopted? Republican household solution for the Republicans

The Republicans of the House took a decisive step into the implementation of Donald Trump's “large, beautiful draft law” on Tuesday and narrowly passed a budget decision that supported his legislative agenda with a vote from 217 to 215.

While a number of contributions on social media claimed that the congress had passed Trump's promised “No Tax on Tips” law, the framework only lays the way for legislators to advance such plans – but it does not include a recipe for a guideline.

Why is it important

By adopting the budget resolutions, the house and the Senate can now negotiate how it can progress in order to implement the promised laws of Trump, which are intended to extend tax cuts and introduce the expenditure cuts throughout the federal government.

The resolution requests 4.5 trillion dollars of tax breaks and patterns of 2 trillion US dollars over the next 10 years, measures that have taken the opposition from Democrats and made some Republicans restless. All house democrats rejected the farewell of the law on Tuesday, while only one Republican voted against it – Rep. Thomas Massie von Kentucky.

Moderate Republicans are cautious when it comes to implementing the type of tax cuts and spending cuts that Trump wants because they fear that they will increase the country's debt while not saving enough money and the legislators could force social security programs How to lower Medicaid.

What to know?

The budget solution does not contain any invoice in which taxes are removed for tips, since some have incorrectly claimed on social media. In fact, it does not contain any political prescription at all, but there are instructions for what legislators should try and has officially started the process of adopting Trump's promised laws, including the termination of taxes for tips.

The frame contains the committee orders to reduce between 1.5 trillion dollars and 2 trillion US dollars, and enables the possibilities and funds of the committee increase the deficit by up to 4.5 trillion dollars and at the same time Design Trump's promised tax cuts. However, it does not indicate which tax should be reduced.

The President wants the congress to extend the law on tax cuts and jobs for 2017, which should expire at the end of the year. He also wants to add new tax guidelines, including the removal of taxes to tips, social security benefits and overtime wages. However, the expansion of the 2017 tax law will cost around 4 trillion dollars over a decade, as reported by the New York TimesLeave the Republican legislators in a difficult point to decide which other tax benefits should be included in future laws.

US spokesman for Mike Johnson's house on February 25, 2025 in the US Capitol in Washington, DC,

Kayla Bartkowski/Getty Images

According to experts, the guidelines promised by Trump during his presidential campaign of 2024 become expensive. The impartial committee for a responsible federal budget estimated that the package over 10 years could ensure that the existing debts of 36.2 trillion dollars could ensure that the package over 10 years. The termination of taxes on tips alone could increase between 100 and 550 billion US dollars in the next ten years.

While these budget resolutions were finally successfully adopted, the spokesman for House, Mike Johnson, had to hold his close majority in congress with tooth and nail to keep the Republicans in line, since the GOP cannot afford it more than one voice to lose. More opposition and bitter infighting is expected in the ranks of the GOP, as they decide which federal programs should shrink to support Trump's massive tax cuts.

What people say

House Johnson's spokesman said after the budget decision was passed on Tuesday: “House Republicans have drawn the congress closer to the transfer of President Trump's full agenda, not just parts of it.”

Adam Michel, the director of tax policy studies at the Libertarian Cato Institute New York Post: “The resolution is stronger than at the beginning. It now contains a trigger that combines the size of the tax reductions to the ability of the respective committee to fulfill or surpass the expenditure of 2 trillion US dollars the only way to stabilize the public debt to protect the Americans from higher taxes and to achieve ambitious economic growth goals.

The democratic leader of the House, Hakeem Jeffries, said about the stages of the Capitol, as reported by the Associated Press: “Our way of life as a country has been tackled.”

Massie, the only Republican in the congress that is right against the household solution, wrote about X: “The GOP budget extends the 5 -year tax holiday that we enjoyed, but because it does not reduce the expenditure, it increases the deficit by over 300 billion US dollars a year compared to the expiry of tax reductions. Over 10 years this is the case.

What's next

It would take weeks for Trump to promise – including tax breaks – the law on the law on the house and the Senate before the Senate concluded. The two chambers have adopted their own versions of legislation, and it can still be seen which they would agree.

The decisions adopted on Tuesday does not indicate which tax proposals are included, and the guideline “No tax on tips” remains taken into account.