Markets 
NEWYou can now listen to Fox News articles!
Ahead of Tax Day, House Speaker Mike Johnson, R-La., is spotlighting a new tax break enacted by Republicans last year that is boosting millions of Americans’ take-home pay.
Bob Mitchell, an Uber driver from South Florida, recently gave Johnson a first-hand account detailing how the “no tax on tips” deduction allowed him to claim a 20% larger refund compared to last year, according to a video obtained by Fox News Digital.
“I usually get a very nice return. And I was shocked. Even my accountant was shocked,” Mitchell told Johnson after delivering an Uber Eats order to his office.
“This is going to make a big difference,” he continued, adding that the new deduction put more money in his pocket to manage expenses such as his children’s tuition.
HERE’S THE MONEY PEOPLE IN EACH STATE COULD POCKET UNDER TRUMP’S ‘BIG BEAUTIFUL BILL’ SAVINGS
Mitchell is one of more than 3.5 million Americans that have claimed the “no tax on tips” deduction so far this year, according to data released by the Treasury Department.
The new deduction was among a flurry of tax benefits enacted by President Donald Trump’s One Big Beautiful Bill Act in July 2025. Every Democratic lawmaker voted against the measure, citing the legislation’s reforms to Medicaid and food assistance programs.
Republicans notably made the tax break retroactive, allowing tipped workers to claim the deduction for the 2025 calendar year.
Under the legislation, individuals who receive qualified tips can deduct up to $25,000 annually through 2028. The deduction gradually phases out for individuals making over $150,000 and married couples earning more than $300,000.
THUNE PROMISES ‘SAFE STREETS, MORE MONEY IN POCKETS’ AS GOP SENATORS HIT THE ROAD TO TOUT TAX CUTS
In the video, Johnson called the “no tax on tips” deduction one of the “greatest achievements” of Trump’s second term so far.
“We wrote the working families tax cuts for lower- and middle-class earners; that’s where I come from, those are our people,” the speaker said. “And it’s going to benefit those folks.”
It’s stories like Mitchell’s that Republicans hope will put a human face on their tax relief efforts ahead of November’s midterm elections.
President Trump first floated a tax break for tipped workers while on the campaign trail in 2024.
Republicans are also highlighting new tax breaks for overtime pay and seniors as part of their messaging on the economy.
Roughly 45% of tax filers have claimed at least one deduction passed by Republicans through their 2025 tax and spending cut law, according to the Treasury Department.
Despite the “no tax on tips” deduction’s popularity, various Democratic-led states have declined to implement the tax code change, citing impacts on revenue. Republicans passed legislation in February overruling a D.C. City Council ordinance that would have blocked new tax breaks for tipped workers and those working overtime from going into effect.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Republicans’ tax messaging push comes as the party faces headwinds over the economy and inflation, though recent polling shows that Americans still favor the GOP over Democrats on those issues.
Three-quarters of voters say the economy is in bad shape, according to a Fox News poll released in March. The same survey also found that 71% of voters disapprove of Trump’s handling of inflation.
Read the full article here
