Nearly 30 million Americans have taken advantage of the tip and overtime tax breaks introduced under the Revenue Act. Donald Trumpaccording to economic agenda Scott Bessantwho shared the latest data ahead of the April 15 tax filing deadline.
Bessant, speaking at an event with small business owners in New York’s Hudson Valley, said the situation points to increasing use of provisions rolled out in the government’s flagship tax code.
According to the New York Post, Bessent said that 5.7 million taxpayers have claimed the “tip exemption” deduction, while 23 million taxpayers have claimed the “overtime exemption” benefit.
“That’s the biggest one,” Bessant said of the overtime provision.
The total is nearly 30 million, up from about 24.6 million previously reported and a sign that more Americans are choosing to take the deduction as filing season winds down.
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What is the “tip tax exemption” and overtime deduction?
The policies are part of the government’s “Beautiful Bill,” a sweeping tax plan that also expands the standard deduction, lowers taxes on vehicle loan interest and provides relief for businesses and seniors.
These deductions allow eligible workers to exclude certain tip income and overtime income. taxable incomeeffectively increasing take-home wages.
Workers and businesses report early impact
At events in the Hudson Valley, business owners and workers pointed to changes.
Raj Aman, who runs a bar in Yorktown, said the policy helps attract workers. “Three years ago, I couldn’t find any servers or bartenders,” he said, adding that hiring has increased significantly as more people seek tax-deductible tip income.
Bartender Claire Kerrigan said the deductions allow her to spend more freely. “It’s been a really big help,” she said, noting that she no longer has to set aside as much money for taxes.
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Local official Brundle Logan-Charles, a Democrat, also praised the policy, calling it a “wake-up call” for her party and thanked lawmakers for pushing for the changes.
economic push
Republican Congressman Mike Lawler said tax reform is part of a broader pro-growth strategy, noting that it would allow companies to pay for research and development and hire more workers.
Bessent added that businesses have already benefited from approximately $100 billion in additional deductions, which he said could support job creation across the country.
While early data suggests high adoption rates, the full economic impact of the tax break may become clearer after this filing season ends.
