As Americans prepare for the start of tax season next week, several new tax breaks are on the table as part of President Donald Trump’s “big beautiful bill.”
“We passed the largest tax cuts in American history, including no tax on tips, no tax on overtime, no tax on Social Security for our great seniors,” Trump said in a speech at the World Economic Forum in Davos, Switzerland, on Wednesday.
According to the Tax Foundation, the One Big Beautiful Bill Act that Trump signed into law last summer represents the country’s sixth-largest tax cut, and is expected to reduce federal tax revenue by $5 trillion from 2025 through 2034.
Experts expect the new law to result in larger tax refunds for many Americans this spring.
But despite the “no tax on...” framing, the new measures generally do not eliminate the tax obligation entirely for tips, overtime, and Social Security, experts say.
