Leavitt's post was sufficiently misleading as to draw a "community note" on the Elon Musk-owned platform, which clarified that the Republican bill "does not fully eliminate taxes on tips, overtime, or Social Security as claimed; it offers limited deductions with caps (e.g., $25,000 for tips, $12,500 for overtime) and excludes high earners, with no provision to remove taxes on Social Security."
As Axios reported Thursday, the Republican legislation does include "an increased tax deduction for tax filers age 64 and older," but the benefit "leaves out the poorest seniors" and expires in 2028, when President Donald Trump is set to leave office.
The tax deductions for overtime and tips also expire in 2028.
That's unlike the major tax breaks for the wealthy that are included in the legislation, which extends soon-to-expire provisions of the 2017 Trump-GOP tax law. For example, the new Republican bill would permanently raise the estate tax exemption, allowing ultrawealthy individuals and married couples to give their heirs up to $15 million or $30 million without paying any federal taxes.
"A married couple worth $30 million where both spouses die in 2026 would pay some $6 million less under the bill compared with current law," The Wall Street Journal observed.
Brendan Duke, senior director for federal budget policy at the Center on Budget and Policy Priorities, estimates that the GOP reconciliation bill's tax breaks for the richest 1% are roughly 10 times larger than the tax deductions for tips and overtime combined.
The Institute on Taxation and Economic Policy (ITEP) noted in a recent analysis that the Senate-passed legislation also "includes permanent corporate tax breaks (involving more generous versions of tax rules for bonus depreciation, research, and limits on interest deductions) that lawmakers have attempted to enact in recent years."
Contrary to the Trump White House's characterization of the reconciliation bill as a historic "middle- and working-class tax cut," ITEP found that "the richest 1% of Americans would receive a total of $117 billion in net tax cuts in 2026."
By contrast, according to ITEP, "the middle 20% of taxpayers on the income scale, a group that has 20 times the number of taxpayers as the richest 1%, would receive less than half that much, $53 billion in net tax cuts that year."
"The effects of President Trump's tariff policies alone offset most of the tax cuts for the bottom 80% of Americans," the group added. "For the bottom 40% of Americans, the tariffs impose a cost that is greater than the tax cuts they would receive under this legislation."
Survey data released Wednesday by Data for Progress shows that the Republican legislation is unpopular with a majority of likely U.S. voters. The new poll, conducted between June 27 and July 1, found that 62% of Americans are either somewhat or very concerned about the bill's "cuts to income taxes on wealthy Americans."
