The National Restaurant Association is celebrating a significant legislative win following the U.S. House of Representatives’ narrow approval of President Donald Trump’s new tax bill. The bill, which passed with a vote of 215 to 214, includes provisions that eliminate taxes on tips and overtime pay, a move seen as beneficial for the restaurant industry.
Michelle Korsmo, the President and CEO of the National Restaurant Association, hailed the bill as a major victory for restaurant owners and their employees. She emphasized that the legislation contains important tax measures that could support growth in the industry. Key features include the 199A qualified business income deduction, full expensing of capital investments, and the reinstatement of depreciation and amortization for calculating business interest expenses.
Korsmo noted that more than two million tipped servers and bartenders would directly benefit from the "No Tax on Tips" provision. Additionally, the bill’s "No Tax on Overtime" measure is expected to reward the commitment of around 13 million hourly workers in the sector. She pointed out that tax policies play a crucial role in the survival of small businesses, especially in the restaurant industry.
The passage of the bill marks a significant achievement for Speaker Mike Johnson and the Republican Party, particularly as they highlight that every Democrat in the House opposed the tax relief measures. The Republican National Committee (RNC) has been vocal in reminding the public of this opposition, stating that Democrats voted against tax relief for hardworking Americans and immigration enforcement, while also criticizing their stance on the Trump Tax Cuts.
Following the House vote, President Trump took the opportunity to criticize Democrats, claiming they have lost their way and are out of touch with American voters. He expressed confidence that the bill aligns with what the American people want, contrasting Republican priorities with what he described as the Democrats’ agenda.
As the bill moves to the Senate, the National Restaurant Association is eager to work with lawmakers to ensure the legislation continues to progress. The restaurant industry, which has faced numerous challenges, is hopeful that these tax provisions will provide much-needed relief and support its recovery and growth.