House GOP moves to block DC from stopping Trump tax cuts for tipped, overtime workers

House Republicans passed a bill to stop Washington, D.C., from blocking key parts of President Trump’s tax law, including provisions eliminating taxes on tipped and overtime wages.

President Donald Trump signs the One Big Beautiful Bill Act during a picnic with military families to mark Independence Day, at the White House on July 4, 2025. (Ken Cedeno/Reuters)

"Republicans want more money to be in the hands and in the pockets of working-class families, and Democrats want that money to be in the hands of government," Gill said.

The D.C. government generally conforms with large swaths of the federal tax code, as a federal territory itself.

But according to local officials, including non-voting Del. Eleanor Holmes Norton, D-D.C., enacting the full Trump tax bill would amount to a $600 million revenue loss for the city.

TRUMP SIGNS 'BIG, BEAUTIFUL' BILL IN SWEEPING VICTORY FOR SECOND TERM AGENDA, OVERCOMING DEMS AND GOP REBELS

Del. Eleanor Holmes Norton arrives for a subcommittee hearing in Washington, D.C., July 23, 2025. (Graeme Sloan/Bloomberg via Getty Images)

"So to give you a few examples, you have no tax on tips, no tax on Social Security, no tax on overtime pay, a variety of pro-growth, pro-business tax provisions that they decided they wanted to decouple from. So what we're saying is, we think that that's bad policy on D.C.'s part, and we're gonna stop them."

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Congress has the ability to overturn most local laws set by D.C. thanks to the District of Columbia Home Rule Act of 1973.

If passed by both the House and Senate, however, Republicans' bill could complicate the tax season for D.C. residents who have already begun filing for their annual returns.

Elizabeth Elkind is a politics reporter for Fox News Digital leading coverage of the House of Representatives. Previous digital bylines seen at Daily Mail and CBS News.

Follow on Twitter at @liz_elkind and send tips to elizabeth.elkind@fox.com

https://www.foxnews.com/politics/house-gop-moves-block-dc-from-stopping-trump-tax-cuts-tipped-overtime-workers