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Mike Johnson suggests ‘tax-free tips’ for workers ahead of Tax Day

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Ahead of Tax Day, House Speaker Mike Johnson, R-La., is touting a new tax break passed by Republicans last year that boosts the take-home pay of millions of Americans.

Bob Mitchell, an Uber driver from South Florida, recently gave Johnson a first-hand account explaining how “tax-free tips” allowed him to claim a whopping 20% ​​refund compared to last year, according to a video obtained by Fox News Digital.

“I usually get great returns. And I was shocked. Even my accountant was shocked,” Mitchell told Johnson after delivering an Uber Eats order to his office.

“This will make a big difference,” he continued, adding that the new deduction puts more money in his pocket to cover expenses such as his children’s education.

House Speaker Mike Johnson, R-La., is praising the Republican hold-up to “no tax on tips” ahead of Tax Day on April 15. (Nathan Posner/Anadolu via Getty Images)

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Mitchell is one of more than 3.5 million Americans who have claimed the “no tax on tips” deduction so far this year, according to data released by the Treasury Department.

The new deduction was among several tax benefits passed in President Donald Trump’s One Big Beautiful Bill Act in July 2025. All Democratic lawmakers voted against the measure, citing legislative changes to Medicaid and food assistance programs.

Republicans have reinstated the tax break, allowing affected workers to claim deductions through the 2025 calendar year.

Under the law, people who receive qualified tips can deduct up to $25,000 a year until 2028. This deduction is phased out for individuals making more than $150,000 and married couples earning more than $300,000.

Mike Johnson speaks at a press conference

House Speaker Mike Johnson, R-La., said the Republicans’ offer of “no tax on tips” is one of the “greatest achievements” of President Donald Trump’s second term. (Getty Images)

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In the video, Johnson called the deductibility of “tax-free tips” one of the “biggest achievements” of Trump’s second term so far.

“We wrote working families reducing taxes for low and middle income earners; this is where I come from, those are my people,” said the speaker. “And it will benefit those people.”

It’s stories like Mitchell’s that Republicans hope will put a human face on their tax relief efforts ahead of the November midterm elections.

President Trump first floated a tax break for captive workers while on the 2024 campaign.

Republicans are also highlighting new tax breaks for overtime pay and seniors as part of their message on the economy.

About 45% of tax filers claimed at least one deduction passed by Republicans in their 2025 tax cuts and spending cuts, according to the Treasury Department.

Despite the “no tax on tips” tax deduction, various Democratic-led states have refused to implement the tax code reform, citing impacts on revenue. Republicans passed legislation in February that overrode the DC City Council’s would-be legislation block new tax breaks for employees with ticks and those working overtime to start working.

Donald Trump stands next to Mike Johnson

President Donald Trump first floated a “no tax on tips” on the campaign trail in 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

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The push for Republicans’ tax messaging comes as the party grapples with the economy and inflation, though recent polls show Americans still favor the GOP over Democrats on those issues.

Three quarters of voters say the economy is in a bad state, according to a Fox News poll released in March. The same survey also found that 71% of voters disapprove of Trump’s handling of inflation.

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