Fact check: Are the no tax on tips and overtime in the newly released tax plans?

1. Summary of the results

The claim about no taxes on tips and overtime being part of new tax plans is largely misleading. While there are ongoing discussions and proposals, no actual tax law changes have been implemented yet ^[1]. The House budget resolution that sparked these claims is merely a "blueprint" that does not eliminate any taxes ^[1], and only sets an upper limit of $4.5 trillion in potential tax cuts over 10 years ^{[2] [2]}.

2. Missing context/alternative viewpoints

Several important pieces of context are missing from the original question:

• There is a specific proposal called "The No Tax on Overtime bill" and "The One Big, Beautiful Bill" that would temporarily exempt federal income taxes on overtime wages from 2025-2028, but it's still under consideration and hasn't been passed ^{[3] [4]}
• Even if passed, the overtime exemption would only apply to federal income tax, not payroll taxes like Social Security and Medicare ^[3]
• State-level initiatives exist - Alabama is currently the only state with an active overtime tax exemption, though it expires on June 20, 2025 ^[3]
• The potential implementation dates, if passed, could be either October 1, 2025, or January 1, 2026 ^[3]

3. Potential misinformation/bias in the original statement

The spread of this misinformation appears to stem from:

• Social media amplification of misinterpreted budget resolutions ^[1]
• Confusion between proposals and actual law - while there are ongoing discussions about tax cuts, they require complex political negotiations and approval from both House and Senate, plus Presidential signature to become law ^{[4] [2]}
• The vagueness of the House budget resolution, which only sets broad parameters for potential tax cuts without specifying which taxes would be reduced, has allowed for misinterpretation and speculation ^{[2] [2]}