Trump Tax Law Delivers $1 Trillion to Top 1% as 4 Million Leave SNAP

Q: Will the popular tax-free status for tips and overtime be extended, or will workers face a tax hike after 2028?

Unless Congress acts, workers will face a tax increase after 2028 on tips and overtime that are currently eligible for special tax treatment. Under the One Big Beautiful Bill Act, the “no tax on tips” and “no tax on overtime” provisions are temporary. The available guidance says both apply only for tax years 2025 through 2028. For tips, workers can deduct qualified tip income up to $25,000. For overtime, workers can deduct the overtime premium portion, up to $12,500 for single filers and $25,000 for joint filers. That means tips earned in 2029 and overtime paid in 2029 would become fully taxable again under current law, unless lawmakers pass an extension. Employers still withhold federal income tax during the year; the benefit is claimed when workers file their returns. There is no confirmed extension yet. Some lawmakers and labor groups are pushing to preserve or broaden the overtime break, and advocates for tipped workers are also seeking to keep the benefit in place. But those are proposals, not enacted law. The political and budget backdrop makes an extension uncertain. Analysts note that extending expiring OBBBA provisions, including tips and overtime, would add substantial cost over a decade. That fiscal pressure could complicate any effort to make the breaks permanent. So the practical answer is clear: as of July 2026, the tax-free treatment is popular but temporary, and workers should assume it ends after 2028 unless Congress changes the law.

3 articles · Updated · CBS New York · Jul 3

One year after enactment, the One Big Beautiful Bill Act is showing uneven effects: high-income households, corporations, seniors and some workers are gaining, while food-aid recipients and clean-energy businesses are losing ground.
The law permanently kept the top tax rate at 37%, raised the SALT deduction cap to $40,000 and restored full bonus depreciation, changes critics say steer large benefits to wealthy taxpayers and major companies.
Worker- and family-focused provisions have also reached millions: 7 million claimed the tips deduction, 28 million the overtime deduction, 34 million seniors took a $6,000 bonus deduction, and more than 6 million Trump Accounts have been opened.
SNAP has already tightened under new work rules for adults 18 to 64, with participation down more than 4 million people, or 10%, through March; Medicaid work requirements and more frequent checks start in 2027.
Clean-energy and EV sectors have also been hit after federal credits ended or were phased down, with U.S. EV sales falling 22% in 2026 from a year earlier.

Sources

Left50%

Center25%

Right25%

CBS New York5h ago

One Big Beautiful Bill Act: First-Year Impact Reveals Winners and Losers

AOL5h ago

One year later, here's who won — and lost — under the OBBBA - AOL

IndexBox, Inc.2h ago

One Big Beautiful Bill Act Impact Analysis: Tax Cuts and Spending Reductions - News and Statistics - IndexBox

6 Sources

Will the popular tax-free status for tips and overtime be extended, or will workers face a tax hike after 2028?

As clean energy credits end, which new technologies are attracting investment to power America's future?

With new work rules for aid, what community-led solutions are helping people find stable employment?

$792 Billion in Medicaid Cuts and 4 Million Fewer SNAP Recipients: The Impact of the 2025 One Big Beautiful Bill Act

Overview

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, triggered a year of major policy changes by extending tax cuts from the 2017 Tax Cuts and Jobs Act and reducing social safety nets. This prevented tax increases for many households that would have started in 2026, especially benefiting higher-income earners by keeping the top tax rate at 37%. At the same time, the Act led to sharp declines in programs like SNAP, making it harder for millions to afford food. These changes have already impacted households, businesses, and federal programs, setting the stage for broader economic and social effects.

...