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'No tax on tips' promise remains a sticking point as Senate grapples with spending bill

The concern from some fiscal conservatives is that policies to eliminate some taxes on tips and overtime are not sufficiently pro-growth.
'No tax on tips' promise remains a sticking point as Senate grapples with spending bill
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Senate Republicans are still deeply divided over how to cut the cost of the so-called big beautiful bill.

One policy some lawmakers are reportedly looking to scale down is a provision that would ensure no taxes on tips, no taxes on overtime and tax relief for seniors — banner proposals that candidate Trump touted on the campaign trail.

The concern from some fiscal conservatives is that those policies are not sufficiently pro-growth. Senator Ron Johnson of Wisconsin has made it clear that he's got some serious issues with this overall bill, and would be more likely to support it if the popular tax provisions were stripped or reduced.

But even if they have issues with the larger bill, most senators still largely support the no tax on tips portion of the agenda.

"I think the more you keep of what you earn is better. The money belongs to the people who earn it and the more that is left in their pocket, the better," Sen. Rand Paul, the Republican from Kentucky, told Scripps News. "There's 2 economies. There's the productive economy and the non productive economy. What you see around you is the non productive economy. It's soaking up and absorbing money but not using it very wisely or efficiently."

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Meanwhile, House Speaker Mike Johnson has indicated that chamber remains committed to keeping the tax provisions in place.

I talked to my good friend Sen. Ron Johnson multiple times," Johnson said. "I told him, look, we all agree with our Senate colleagues that believe we need to cut more and more government waste, fraud and abuse, obviously. But I reminded him of the reality of the delicate balance we have in the House and the fact that we have a very broad caucus and we have 170 additional personalities to deal with than they do in the Senate. It takes a while to meet this equilibrium point."

"I think the promise on no tax on tips, no tax overtime is very important to the president. It's very important to hardworking Americans."