Trump Pushes Tax Cuts on Tips, Social Security Amid GOP Resistance

WASHINGTON, D.C. — Former President Donald Trump is pushing to expand his 2017 tax cuts, including eliminating taxes on tips, Social Security benefits, and overtime pay, but faces significant resistance from House Republicans, according to conservative economist Brian Reidl.

Trump reiterated his campaign promises during a meeting with House Republicans at his Doral club in South Florida. “We’re working very hard to get them done,” Trump said, as reported by Wall Street Journal tax analyst Richard Rubin.

However, Reidl, a strategist and economist, expressed skepticism about the feasibility of Trump’s proposals. “Hill Republicans are spending so much effort building a spending cut package to reduce the net cost of the TCJA extension (and possible SALT expansion), I cannot imagine there being much appetite to then blow their deficit numbers back up with this nonsense,” Reidl said on X Monday.

The 2017 Tax Cuts and Jobs Act (TCJA) included a cap on the state and local tax (SALT) deduction, which disproportionately affected higher-tax, Democratic-controlled states. Reidl noted that the SALT deduction has not generated the expected revenue, complicating efforts to extend the TCJA.

Trump’s “no tax on tips” proposal gained traction last year, even influencing his rival, former Vice President Kamala Harris, who adopted a similar policy. However, experts warn that implementing such a policy would be complex and could create administrative challenges.

Despite Trump’s enthusiasm, Reidl said House and Senate Republicans remain focused on extending the TCJA rather than pursuing new tax cuts. “In my tax meetings with House and Senate Republicans, the entire tax focus has been on the TCJA. I’m not hearing anyone taking the stuff on tips, overtime, and Social Security very seriously,” he said.