January 1, Senate Pushes D.C. to Accept Trump Tax Perks

Wyatt’s Take

• Senate overruled D.C. to enforce Trump’s tax breaks for working folks.
• D.C. politicians tried to block relief on tips and overtime pay.
• Law now moves to President Trump, who’s expected to sign it.

Washington insiders just got a wake-up call: The Senate voted 51-46, forcing D.C. to put in place all the tax benefits from President Trump’s One Big Beautiful Bill Act.

D.C.’s council tried to sidestep pieces of the plan, which would scrap taxes on tips and overtime pay for regular workers.

Florida Sen. Rick Scott put it plainly:

“It is absolutely absurd that self-interested D.C. bureaucrats would deliberately deny families and businesses from saving their own, hard-earned dollars,” Scott said.

The House already backed a matching plan to undo D.C.’s moves, and now the package waits for President Trump, who’s expected to give his approval.

Some states led by Democrats have dragged their feet and refused to allow these tax cuts, drawing more fire from Republicans. According to a January Rainey Center Poll, 69% of Americans want tips and overtime pay kept tax free.

Treasury Secretary Scott Bessent nailed the core issue in December:

“By denying their residents access to these important tax cuts, these governors and legislators are forcing hardworking Americans to shoulder higher state tax burdens, robbing them of the relief they deserve and exacerbating the financial squeeze on low- and middle-income households,” Bessent said.

Many Democrats actually back certain tax perks, even if they voted against the bill overall, and some have sided with Republicans on related ideas in the past year.

Not everyone in D.C. was happy, with Mayor Muriel Bowser complaining about disruption and red tape if new tax rules are rushed. D.C. city leaders say it could mean headaches for folks filing taxes and mess with city budgets.

D.C.’s Eleanor Holmes Norton argued that tax changes would force delays and hurt the city’s bottom line by hundreds of millions. Even so, the Republican-led Congress is pressing on with more oversight of the District, having already tried to get tough on crime there last fall.

Millions stand to gain if tips and extra hours aren’t taxed, from waitresses to rideshare drivers. Washington elites may fuss, but most Americans seem eager for a break.

Wyatt Matters

This showdown proves who stands with working Americans and why relief for tips and overtime matters. Middle America knows how to stretch a dollar, and Congress should put regular folks first.

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