Economist Justin Wolfers criticized President Donald Trump’s tax legislation, arguing that several campaign promises targeting workers and retirees were narrowed in the final law while tax cuts benefiting wealthier Americans remain permanent.
Wolfers Calls Trump Tax Promises Temporary
On Sunday, Wolfers shared a post on X while reposting a Platypus Economics video clip of his discussion on Trump’s “One Big Beautiful Bill.”
He wrote, “No tax on tips. No tax on overtime. No tax on Social Security. Except: all taxed with narrow carve-outs, and all of it expires end of 2028.”
“The one part of the tax bill that doesn’t expire? Tax cuts for the wealthy. Those are permanent. Populism with an asterisk,” he added.
Economist Targets ‘No Tax’ Promise
In the video, Wolfers said the tax bill did not fully deliver on several campaign promises.
“You saw this in a whole bunch of other ways,” he said.
He added, “The president went on the campaign trail and promised no tax on tips. It turns out you do tax tips.”
Wolfers said the law provides relief only for workers in certain tip-heavy occupations and that the provision expires at the end of 2028.
He made a similar argument about overtime, saying, “He talked about no tax on overtime. It turns out he does tax overtime.”
He explained that if someone works extra hours and receives time-and-a-half pay, “it’s only the extra half that’s not taxable, only up to a limit, only for certain occupations.”
In 2024, Trump had proposed eliminating taxes on overtime wages, saying it would encourage workers to take more hours and help businesses hire.
Permanent Tax Cuts For Wealthy
Wolfers also argued that Social Security benefits remain taxable, saying the bill created a separate tax benefit for older Americans rather than eliminating taxes on Social Security itself.
“You know, there’s one thing that didn’t run out at the end of 2028,” he said.
He added, “The tax cuts for the rich are permanent.”
Trump’s Tax Refund Promise
Earlier, Trump predicted that Americans would receive the “largest tax refund season ever” in spring, crediting the “One Big Beautiful Bill” with delivering major tax changes.
He said the legislation combined 17 initiatives and projected that average refunds could increase by up to $1,000 per filer due to provisions including “No Tax on Tips” and “No Tax on Overtime.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Pla2na
