Washington, DC:

US President Donald Trump on Tuesday said his administration is seeking permanent income tax cuts for all Americans, hit hard by inflation. He also reiterated his promise to end taxes on overtime pay, tips and Social Security.

“I’m calling for no tax on tips, no tax on overtime and no tax on Social Security benefits for our great seniors,”  he said during his joint address to the Congress.

Urging Democrats to vote through those proposed changes, the President said, “I’m sure you’re going to vote for those tax cuts…because otherwise I don’t think the people will ever vote you in to office”.

“But I know this group is going to be voting for the tax cuts,” he added, pointing to the Republicans to loud cheers from the group.

Donald Trump has been seeking Congressional approval for a massive bill that would extend tax breaks, which he secured during his first term in the White House. The measures are expiring later this year. 

During his presidential campaign, Trump had pledged to support legislation to eliminate taxes on overtime pay, saying it gives people “more of an incentive to work.” 

“It gives the companies a lot, it’s a lot easier to get the people,” he said in September last year at a campaign rally in Tucson, Arizona. 

The plan to exclude workers’ tips from federal taxes was first unveiled by Trump in June, 2024. At the time, he said he got the idea from a waitress at his Las Vegas hotel.

“To those hotel workers and people who get tips, you are going to be very happy, because when I get to the office, we are going to not charge taxes on tips, people making tips…We’re going to do that right away, first thing in the office,” Trump had said.

So far, no further details regarding the plan have been announced officially, including whether the tips would be exempted from just income taxes or the payroll tax as well.