Donald Trump signed Bill to make
New Tax Law
On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act,
a sweeping tax reform described by supporters as “essential financial relief for American workers.”
Key Benefits
The law makes earlier tax cuts permanent and adds new provisions,
including exempting “overtime pay and all tips” from federal income tax.
It also expands deductions for seniors. While tips must still be reported,
many service workers are seeing higher take-home pay.
Supporters’ View
Backers say the law raises income without forcing employers to increase wages.
Senator Ted Cruz argued, “These workers deserve to keep more of what they earn.”
Criticism and Impact
Opponents warn it could add “$3.4 trillion to the federal deficit”
and unfairly favor certain workers, with risks of pay manipulation.
Still, hospitality workers already report higher net pay.
