KANSAS CITY, Mo. — Following days of debate on Capitol Hill, the final vote to pass President Donald Trump's mega-spending bill was a close call in the U.S. House.
While some of the bill's provisions won't take effect immediately, there are workers earning money through tips and overtime who could see federal tax relief soon.
The legislation is known as the "Big Beautiful Bill" for its massive spending and tax cuts.
KSHB 41's Alyssa Jackson contacted several local businesses about the overtime and tip provisions, but not all of them wanted to comment on the legislation.
Mark Byrd, owner of Reflections Kitchen and Kocktails in Kansas City, Missouri
, initially hesitated to talk about it.
"I call it the Big Ugly Bill," Byrd said.
However, Byrd thinks the "ugly bill" he references is also what will support his employees.
He said: "A server doesn't know are you gonna make $3 today or $300 today. Imagine being taxed on $3. You worked for free at that point."
The spending bill limits a federal deduction on tips of up to $25,000.
It allows a deduction for overtime pay up to $12,500.
To qualify, individual income can't exceed $150,000 or $300,000 for couples.
The overtime and tip deduction provisions of the spending bill go into effect in the 2025 tax year and expire in 2028.
"This should've happened a long time ago," Byrd said. "We're taking from an industry that makes the least."
Byrd added that the relief is necessary, but employers should also pay workers a fair wage.
Once the president signs the bill, the IRS and the Treasury Department will provide guidance and new tax rules.
KSHB 41 reporter Alyssa Jackson covers portions of Johnson County, including Overland Park, Prairie Village and Leawood. Share your story idea with Alyssa
