JEFFERSON VALLEY, N.Y. — Treasury Secretary Scott Bessent touted the Trump administration’s tax deductions for tipped wages and overtime pay Friday, revealing that nearly 30 million Americans have taken advantage of the new policy.
The so-called “No Tax on Tips” and “No Tax on Overtime” deductions were part of President Trump’s signature One Big Beautiful Bill Act (OBBBA), which also slashed taxes on vehicle loan interest, raised standard and state and local tax deductions and included significant new tax relief for businesses and seniors.
Bessent, addressing small business owners in the Hudson Valley with Rep. Mike Lawler (R-NY), said 5.7 million taxpayers had filed for “No Tax on Tips.”
Another 23 million filed for “No Tax on Overtime,” according to the Treasury secretary, who described the new overtime rule as “the biggest one.”
The latest figures – an increase from the 24.6 million Bessent said were utilizing the two new deductions last month – were revealed ahead of next week’s April 15 tax filing deadline.
At the event, several members of the local community, both Democrats and Republicans, praised Trump’s tax cuts and Lawler’s push to raise the state and local tax (SALT) deduction cap.
Raj Aman, who runs a bar attached to a golf course in Yorktown, N.Y., said “No Tax on Tips” has encouraged more people to jump into the workforce.
“Three years ago, I couldn’t get any servers or bartenders,” Aman explained. “This year, we have people calling us that said, ‘Do you have a job opening?’ And we’ve already, for the start of the season of the golf course, we’ve already interviewed over 85 people from zero.”
“So basically, everybody wants their tips not being taxed,” Aman said. “They’re making a lot more money than they would ever imagine.”
Brendel Logan-Charles, deputy supervisor of neighboring Ramapo, and a Democrat, argued the success of the tax cuts should serve as a wake-up call for her party.
“Congressman, thank you,” she told Lawler. “Thank you. Thank you for always doing the work. Thank you for bringing the secretary here. This is a great day for us, and I will continue to support and tell my Democratic colleagues they need to get it together.”
Claire Kerrigan, a bartender at AJ’s Bar and Grill, said that the tax cuts were “great” because she wouldn’t have to put her dough aside and could now “spend it.”
“I’m not going to be putting it aside, like, ‘Oh, I have to pay my property taxes with it,’ or, something like that. It’s really, truly a big help,” Kerrigan said.
Sergio Esposito, former president of the Yorktown Chamber of Commerce and current town councilman and deputy supervisor, argued that the full effects of the tax cuts have yet to be felt.
“There’s going to be more money out there. People are going to be out there. They’re going to be spending more. They might go out to dinner an extra time or two. They might go out and buy something that they ordinarily couldn’t afford,” Esposito said.
“I am telling you this is going to be a really, really big Black Friday coming up,” he added.
Bessent and Lawler started their day touring the Regeneron Pharmaceuticals plant in Tarrytown, the “crown jewel” of the district, according to the congressman.
“What we saw there is exactly what strong pro-growth economic policy looks like in action, world class innovation, cutting-edge research, and hundreds and thousands of high-paying jobs right here in our own backyard,” Lawler said.
Lawler and Bessent said the tax cuts would help grow the economy, and used Regeneron as a local example.
“Thanks to the Working Families Tax Cut Act companies like Regeneron can immediately expense their R and D costs and take full advantage of bonus depreciation, which means they can hire more scientists, technicians and skilled workers, while keeping their operations here in America instead of shipping jobs overseas,” Lawler explained.
Bessent added that he was “encouraged to hear from the people of Regeneron that they are going to be creating new jobs here in New York,“ noting this was a trend he’s been seeing happening nationwide.
“We’re seeing an extra $100 billion in deductions for tens of thousands of big businesses and small businesses,” Bessent said.
The Treasury secretary also lauded the administration’s new Trump accounts for children, which will create investment accounts for children born during the president’s second term and seed them with $1,000 that compounds until the time a child is 18 years old.
“I think that this is the most important thing that we are doing for young people since the GI Bill,” Bessent said.
