When you have a huge bill, there are often things you like and do not like. The BBB had stuff that was intolerable.The Democrats voted against the BBB which would have eliminated President Trump’s tax cuts from his first term.
- The new law creates a deduction: For tax years 2025 through 2028, eligible employees and self-employed individuals can deduct qualified tips from their income, potentially eliminating federal income taxes on up to $25,000 in tips. This is a deduction, not an exemption.
- Average Earners: If the BBB had not passed, and the TCJA provisions were allowed to expire, middle-income households, earning between $67,000 and $119,000, could have faced tax increases averaging around $1,800 in 2026.
Tax and spend Democrats.