SENIORS, TIP RECEIVERS AND OVERTIME RECIPIENTS-- ENJOY THE BENEFITS UNTIL THEY EXPIRE IN 2028
The One Big Beautiful Bill Act (OBBBA), was signed into law by President Donald Trump over the July 4, 2025, weekend.
While he was campaigning, President Trump promised there would be no tax on:
- Social Security Benefits
- Tips
- Overtime
However, after going through Congress, the President got much less than he promised.
Seniors
Instead of the promised no taxes on Social Security, there is a “Senior Deduction” for people over 65 of $6,000 for a single person making less than $75,000 in modified adjusted gross income (MAGI) and $12,000 for a married couple over 65 making less than $150,000 in MAGI. Over these amounts the amount of the deduction gradually reduces to zero for singles with $175,000 of MAGI and married couples with $250,000 of MAGI.
It is expected that 88% of seniors will be exempt from taxation on Social Security benefits. However, this provision expires on December 31, 2028.
Tip Income
Instead of the promised no taxes on tips, workers who traditionally receive tips-- waiters, bartenders and delivery drivers and some others, can deduct up to $25,000 of these tips from their adjusted gross income (AGI). This deduction is eliminated for incomes over $150,000 for single filers and $300,000 for married filers. It is retroactive to January 1, 2025, but ends December 31, 2028.
Overtime
Instead of the promised no taxes on overtime, there is a deduction of up to $12,500 for single taxpayers and $25,000 for married taxpayers for qualified overtime compensation received during the year. The deduction phases out with MAGI of $150,000 for singles and $300,000 for joint return. The deduction ends on December 31, 2025.
CONCLUSION
President Trump, we agree that it is the right thing to do:
- Free seniors from taxes on Social Security benefits
- Free waiters and servers from taxes on their tips
- Free workers from taxes on the overtime they need to support their families.
However, but what about the rest of American taxpayers?
Isn’t it time to free all of us from the tyranny of the federal income tax and the IRS?
The income tax must go if we are going to make American great again.
If there is an income tax, any changes are only “permanent” until there is a new president whose party controls Congress.
A recent Quantas Insights poll showed that the majority of Republicans, Democrats and Independents are in favor of eliminating the income tax.
There is an alternative that eliminates the burden on individual citizens and reduces the burdens on businesses by over 90%.
This alternative is the FAIRtax—a simple and progressive national retail sales tax on the retail purchases of new goods and services.
In addition to removing the compliance burden on Americans, the FAIRtax also:
- Eliminates income taxes on Social Security—permanently.
- Eliminates income taxes on tips—permanently.
- Eliminates income taxes on overtime—permanently.
- Taxes imports and provides tax credits to U.S. exporters like all of our trading partners.
- Eliminates the need for most tariffs.
- Brings jobs back to the U.S.
- Eliminates federal taxes up to the poverty level.
- Requires no tax returns for individuals.
- Clearly shows the federal taxes hidden in the prices of the goods we purchase.
- Creates greater economic growth.
- Brings in capital that allows productivity increases and higher wages.
- Eliminate lobbyists and politicians selling tax benefits that harm the rest of us.
- ELIMINATES THE IRS!
We need to move now and put a stake in the heart of the income tax and the IRS so that they cannot be easily resurrected by a subsequent administration.
Many of you have labored tirelessly for freedom from the federal income tax and the IRS. You deserve a great deal of credit for your efforts to educate the American people on the need to fund the American government in a way that is good for America and returns freedom to the American people.
It is imperative, though, that we don’t replace the current income tax and the IRS with an alternative system that can still be manipulated by the Ruling Elite. We must let Congress and the President know that the best way to replace the income tax and the IRS is with the FAIRtax.
Make no mistake about it. The FAIRtax is a grave threat to the Ruling Elites. It will strip them of their power and their ability to control us though the tax system. Their opposition to the FAIRtax will be fierce and unrelenting. And don’t think for an instant that they won’t use half-truths, deception and downright lies in their desperate attempt to hang on to their power.
However, with the support of this President, we can finally eliminate the income tax and the IRS!!!
Of course, the best course of action is to not only repeal the income tax and abolish the IRS but to repeal the 16th Amendment as well so no future administration can ever shackle the American people with an income tax again.
We must come together and ensure that real tax reform, the FAIRtax, is not subverted by the Elites in D.C.
This will take the diligent efforts of all of us. We need your financial assistance, and we need your grass roots assistance.
If you have contacts that will allow us to get more information to President Trump about the FAIRtax please let us know.
Please email us at info@fairtax.org and we will give you some options on how you can best help us.
At a minimum, please call your Congressional representative and ask if he or she supports the FAIRtax. If so, thank him/her for their support and suggest they become a cosponsor of HR-25 if they’re not one already. If not, ask why not. If your representative claims to be unfamiliar with the FAIRtax, offer to have someone come to their office and explain it to them.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.
THE SOLUTION—PASS THE FAIRTAX!
Why would D.C. pass the FAIRtax and give up this almost unlimited source of donations? The only way that they will is if the rest of us demand it!
Isn’t it time to end this ludicrous tax collection system and the IRS?
HELP BRING ABOUT REAL TAX REFORM AND STOP FUTURE IRS ABUSES
By contributing (investing) $10.40 per month, you help provide a financial base to AFFT. If you can make larger contributions (investments), these will be used not for salaries, as we are all volunteers, but for the needed updates to our economic studies which will be vital for all future years.
Please go to this link to invest in AFFT and help us pass the FAIRtax. It’s an investment in your and your family’s future.