Latest News

Elizabethtown, KY – In case you missed it, this week, Congressman Brett Guthrie (KY-02) hosted a roundtable discussion with Kentucky workers about how the Congressional Republicans’ Working Families Tax Cuts have improved their financial well-being ahead of Tax, April 15th. During the event, Congressman Guthrie heard from local servers and law enforcement officers about how these historic tax cuts have enabled them to keep more of their hard-earned money.

“The Working Families Tax Cuts are a tremendous win for workers across the nation, especially right here in Kentucky. From law enforcement officers who work extra hours to keep our communities safe, to servers who rely on tips to pay their bills, to factory workers who work long hours to build p
roducts in the USA – Republicans’ tax policies have put the American worker first,” said Congressman Guthrie. “This Spring, Kentuckians from all walks of life are seeing lower tax bills and higher returns thanks to commonsense legislation that keeps more of your money in your pocket. This is responsible, conservative governance in action.”

Pictures of this roundtable can be found here. 

Short testimony videos with Elizabethtown law enforcement can be found here. 

Short testimony from a tipped worker and college student can be found here. 

B-Roll footage can be found here. 


Background:

No Tax on Tips:
– The Working Families Tax Cuts established a new deduction for qualified tips received by an individual who works in a profession that traditionally and customarily receives tips in a given taxable year, such as servers, delivery/rideshare drivers, hairdressers, baristas, and more. 

– Qualifying individuals may deduct up to $25,000 in tips from their total taxable income as long as they have a modified adjusted income below $150,000 for individuals or $300,000 for married couples filing jointly. 

– Tips must be paid voluntarily, not subject to negotiation, and must be determined by the payor.

No Tax on Overtime:
– This legislation established a new tax deduction for overtime premium payments, which is the amount paid in excess of the regular rate at which an individual is paid.

– This deduction enables qualifying individuals to subtract up to $12,500 of overtime revenue for individuals and $25,000 of overtime revenue for joint returns made through overtime from their adjusted gross income.
– To qualify, individuals must have a modified adjusted gross income below $150,000 or $300,000 for married couples filing jointly. Certain restrictions apply to employees who are employed with contracts that exempt them from the Federal Fair Labor Standards Act regulations.

Additional Tax Provisions Included in the Working Families Tax Cuts:
– Extends the 2017 Tax Cuts and Jobs Act tax reductions, that if not extended would have resulted in a 25% tax increase on Kentucky families. 
– Makes permanent the Enhanced Child Tax Credit, established in the 2017 Tax Cuts and Jobs Act. This bill also increased this tax credit by $200, to $2,200, per child in 2025, and contains provisions to adjust the Child Tax Credit for inflation. 
– Permanently increases the standard deduction for individuals and married couples to $16,100 and $32,200, respectively. This is an increase of $750 for individuals and $1,500 for families.
– Establishes Trump Accounts for children under 18, creating additional savings opportunities for children. For children born between January 1, 2026 and December 31, 2028, the federal government will contribute a $1,000 deposit into the child’s account. Parents can invest up to $5,000 annually, and may invest the balance in a mutual fund or an ETF.  Employers may contribute up to $2,500 annually.