President Donald Trump arrives to speak on his policy to end taxes on tips in Las Vegas, Nevada, on Jan. 25, 2025. (MANDEL NGAN/AFP via Getty Images)
Treasury Secretary Scott Bessent told Fox News' Rich Edson that many workers collect overtime pay when they work Labor Day.
"The One Big Beautiful Bill is no tax on tips, no tax on overtime, no tax on Social Security" and a deduction on auto loans for American-made cars, Bessent said at Martin's Tavern in Washington, D.C., on Monday.
Bessent said cutting taxes on tips is going to "help the bottom 50% of wage earners who just got eviscerated under the Biden administration" and said this is one way to tackle America's "affordability crisis."
Tax cuts on tips and overtime will create real wage increases for working Americans, the secretary told Fox News.
Among the eight sectors laid out by the Treasury Department, several jobs are slated to benefit.
For food and beverage services, bartenders, wait staff, food restaurants, chefs, fast food workers, dishwashers, bakers, host staff, restaurant, lounge and coffee shop workers are all expected to receive no tax on tips.
A woman hands $100 to a bartender in this file photo. (iStock)
Finally, for the transportation and delivery industry, parking and valet attendants, taxi and rideshare drivers, chauffeurs, shuttle drivers, goods delivery people, personal vehicle and equipment drivers, water taxi operators, charter boat workers, pedicab and carriage drivers and home movers should all benefit.
Congress unanimously passed the bipartisan No Tax on Tips Act separately from Trump's "big, beautiful bill" earlier this year.
The Senate bill established a new tax deduction of up to $25,000 for tips, but the One Big Beautiful Bill Act does not include a cap on the tax deduction for tipped wages.
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While Trump's megabill clashed on partisan lines, Democratic senators rallied behind the tax cut for tips, including Nevada's Democratic Sen. Jacky Rosen.
"Working Americans— from servers, to bartenders, delivery drivers, and everything in between— work hard for every dollar they earn and are the ones who deserve tax relief, not the ultra-rich," Senate Minority Leader Sen. Chuck Schumer, D-N.Y., said earlier this year, celebrating Rosen's leadership to pass the No Tax on Tips Act.
Deirdre Heavey is a politics writer for Fox News Digital.
https://www.foxnews.com/politics/treasury-department-reveals-which-jobs-could-secure-major-tax-break-from-trumps-big-beautiful-bill