House Speaker Mike Johnson highlights a new tax break for tipped workers, as an Uber driver shares how it significantly increased his tax refund ahead of Tax Day.
As Tax Day approaches, House Speaker Mike Johnson, R-La., is drawing attention to a new tax benefit that has the potential to enhance the take-home pay of millions of Americans. Bob Mitchell, an Uber Eats driver from South Florida, recently shared his experience with Johnson, detailing how the “no tax on tips” deduction resulted in a 20% larger tax refund compared to the previous year.
In a video obtained by Fox News Digital, Mitchell expressed his surprise at the size of his refund, stating, “I usually get a very nice return. And I was shocked. Even my accountant was shocked.” He emphasized the significance of the deduction, saying, “This is going to make a big difference,” as it provides him with additional funds to manage expenses, including his children’s tuition.
Mitchell is among more than 3.5 million Americans who have claimed the “no tax on tips” deduction this year, according to data from the Treasury Department. This new deduction was part of a series of tax benefits enacted by President Donald Trump’s One Big Beautiful Bill Act, which was passed in July 2025. Notably, every Democratic lawmaker voted against the measure, voicing concerns over its impact on Medicaid and food assistance programs.
One of the key features of the legislation is its retroactive application, allowing tipped workers to claim the deduction for the 2025 calendar year. Under the new rules, individuals receiving qualified tips can deduct up to $25,000 annually through 2028. However, the deduction phases out for individuals earning over $150,000 and married couples making more than $300,000.
In the video, Johnson described the “no tax on tips” deduction as one of the “greatest achievements” of Trump’s second term. He stated, “We wrote the working families tax cuts for lower- and middle-class earners; that’s where I come from, those are our people. And it’s going to benefit those folks.” The speaker’s remarks reflect a broader Republican strategy to humanize their tax relief efforts as they approach the midterm elections in November.
President Trump initially proposed a tax break for tipped workers during his 2024 campaign, and Republicans are now emphasizing additional tax breaks for overtime pay and seniors as part of their economic messaging. According to the Treasury Department, approximately 45% of tax filers have claimed at least one deduction introduced by Republicans through the 2025 tax and spending cut law.
Despite the popularity of the “no tax on tips” deduction, some Democratic-led states have opted not to implement the tax code change, citing concerns over revenue impacts. In February, Republicans passed legislation that overruled a D.C. City Council ordinance aimed at blocking new tax breaks for tipped workers and those working overtime.
As the Republican Party seeks to bolster its messaging on tax relief, it faces challenges related to the economy and inflation. Recent polling indicates that while three-quarters of voters believe the economy is in poor condition, Americans still tend to favor the GOP over Democrats on economic issues. A Fox News poll released in March revealed that 71% of voters disapprove of Trump’s handling of inflation.
As the deadline for tax filing approaches, the implications of these tax breaks will likely continue to be a focal point for both parties as they navigate the complex landscape of public opinion and economic policy.
According to Fox News, the ongoing discussions surrounding these tax benefits highlight the Republican Party’s efforts to connect with working-class Americans and address their financial concerns.