The massive tax-and-spending package would extend several expiring tax cuts that were first passed in 2017, and incorporates President Donald Trump’s top campaign promises, including proposals to remove taxes on tips and overtime wages. The National Club Association has prepared a comprehensive summary (click here for download) of the no-tax-on-tips and no-tax-on-overtime provisions included in the Senate’s updated bill text. If signed into law, the implementation of these two proposals would be reliant on agency guidance, making it difficult for any service industry to predict how the measures will impact business operations. For instance, in the case of the no-tax-on-tips proposal, as written in the One Big, Beautiful Bill, it appears the service charges that clubs include on checks are not eligible to be classified as tips. However, this could change based on IRS guidance. 

President Trump has placed pressure on Congressional Republicans to pass the One Big, Beautiful Bill by July 4. A short time ago, House Majority Whip Tom Emmer (R-Minn.) announced House Leadership’s plan to bring the bill to the floor for consideration tomorrow and the House Rules Committee is already meeting to craft the rules of debate. All this gives Speaker of the House Mike Johnson (R-La.) mere hours to secure enough votes for passage. Fiscal hawks have issued warnings that the Senate version doesn’t make the necessary spending cuts to offset any increase in the deficit. Meanwhile, there’s a handful of House GOP moderates who have said they won't support expanded Medicaid cuts included in the Senate version.

For the most up-to-date information on the bill and how it may affect private clubs, join NCA for a webcast July 10 at 2 p.m. Eastern. Register for "Policy Shift Ahead: Unpacking Big Beautiful Bill Impact on Private Clubs and What Comes Next" here.