Senate, House Advance Conflicting No-Tax-On-Tips Bills Impacting 4 Million Workers

President Donald Trump has promised to eliminate taxes on tips as part of a broader tax proposal known as the "One Big Beautiful Bill Act," which aims to affect around 4 million American workers who rely on tips. While the concept enjoys bipartisan support and is popular among service workers, experts caution that the tax break only applies to reported tips, leaving a significant amount of unreported cash tips unaffected. Senate Republicans remain divided on the overall bill due to concerns over its size and pro-growth impact, with some, including Sen. Ron Johnson, suggesting scaling back popular provisions like the no-tax-on-tips policy. Despite these disagreements, many senators and House leaders, including Speaker Mike Johnson, remain committed to preserving the no-tax-on-tips provision. The debate continues over how much the final legislation will reflect President Trump's tax priorities, as fiscal conservatives seek to trim the bill while maintaining key promises on tips and overtime pay. This ongoing negotiation highlights the complexities behind the headline promise that "tips will be 100% yours," revealing that the actual impact may be more nuanced than initially portrayed.