Tip And Overtime Deductions Won’t Solve America’s Affordability Crisis

Affordability, a defining issue for the 2026 midterms, has lawmakers in both parties racing to show voters they are doing something about reducing the cost of living. This week President Trump highlighted tips and overtime deductions as part of that effort. But newly released TPC estimates show “no tax on tips” and “no tax on overtime” deductions enacted in last year’s One Big Beautiful Bill Act (OBBBA) provide only modest tax relief to a relatively small share of taxpayers at significant cost.