Donald Trump signed Bill to make tips tax-free

On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (OBBB) into law. Under OBBB, tax reductions worth trillions that were scheduled to expire in 2025 will now remain in place permanently. It also adds new breaks, including tax-free overtime pay and an extra deduction for seniors. According to the Congressional Budget Office, the measure is expected to raise federal deficits by $3.4 trillion over the next decade.

This is expected to provide direct financial relief to millions of Americans who are part of the service industry.

This bill is popular among workers, especially those who work in hospitality, but just like the overtime deduction, it isn’t technically a true tax cut but a targeted deduction that favors some groups over others.

Senator Ted Cruz of Texas, who introduced the bill along with Senator Jacky Rosen of Nevada, said, “This is about fairness. These workers are putting in long hours and living paycheck to paycheck. They deserve to keep more of what they earn.”

Senator Rosen emphasized that service workers in tourism-heavy economies like Nevada are the “backbone of the economy,” and that the bill offers them “the respect and support they deserve.”

The No Tax on Tips Act proposes amending the federal tax code to make tip income exempt from federal income taxes. Under current law, tipped workers must report their tips as income, and employers are required to withhold taxes. If the bill becomes law then tips from customers would still need to be reported but they would no longer be taxed at the federal level. The change applied to tips only and excludes wages and employer-paid bonuses.

The deduction excludes automatic service fees, such as mandatory 20% tips for large parties. It also doesn’t apply to anyone in Specified Service Trades or Businesses (SSTBs), which covers professions like law and finance where skill is the main asset.

According to supporters of the bill, it eases burdens on small businesses and increases take-home pay for workers.

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JUDICIAL TAKEDOWN: JUDGE FORCES T.R.U.M.P TO CHANGE KENNEDY CENTER NAME BACK TO ORIGINAL?!

Judge Steps In as Trump’s Kennedy Center Rename Triggers Legal Revolt and Artist Boycotts

A sweeping political and cultural backlash has erupted after Donald Trump moved to attach his name to the John F. Kennedy Center for the Performing Arts, igniting a legal firestorm and prompting urgent questions about presidential authority, historical preservation, and the rule of law. Legal experts say the move may directly conflict with federal statutes governing the memorial.

The controversy intensified after the Kennedy Center’s board—reshaped during Trump’s tenure—approved a name alteration despite a longstanding law requiring explicit congressional authorization for any change. Within days, large metal lettering bearing Trump’s name appeared on the building, a move critics described as unprecedented and deliberately provocative given the Center’s status as a memorial to an assassinated president.

Legal scholars and former government officials quickly pushed back. Norm Eisen, now leading the Democracy Defenders Fund, argued that the action fits a broader pattern of defying both norms and statutes. He noted that courts have repeatedly intervened to halt similar actions, citing hundreds of lawsuits that successfully constrained executive overreach in recent years.

The fallout was immediate and visible. Protests erupted outside the Kennedy Center, while prominent artists began canceling scheduled performances. Representatives for musicians slated to appear at the venue confirmed withdrawals, citing concerns about politicization and respect for the institution’s historical mission. Cultural leaders warned that the controversy could permanently damage the Center’s reputation as a neutral space for artistic excellence.

Members of Congress also entered the fray. Lawmakers emphasized that only Congress—not the White House, and not a board vote—has the authority to rename the Kennedy Center. Several representatives called the move a “sacrilege” and an insult to President John F. Kennedy’s legacy, stressing that the original name was established by statute and signed into law after Kennedy’s assassination.

Beyond the naming dispute, analysts framed the episode as part of a larger pattern. Critics pointed to simultaneous controversies involving judicial defiance, public health policy, and executive unilateralism, arguing that the Kennedy Center episode symbolizes a growing “imperial presidency” operating with few internal checks.

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Political strategists believe the optics could carry electoral consequences. While the renaming has dominated Washington media, polls suggest voters are increasingly concerned about cost-of-living issues, raising questions about why symbolic battles are taking precedence. Opponents argue the issue provides Democrats with a powerful populist narrative: Americans do not have kings, and public institutions are not personal branding tools.

As legal challenges advance and pressure mounts, the future of the Kennedy Center’s name remains uncertain. What is clear, however, is that the attempted rebranding has transformed a cultural landmark into a national flashpoint—one that intertwines law, history, and power. Whether the lettering remains or is removed, the episode has already reignited a fundamental debate about who controls America’s public symbols, and how far presidential authority can truly extend.