SBA Administrator Highlights New Tax Breaks for Workers During Baltimore Visit

Loeffler touts no tax on tips and overtime as part of Trump-era changes to the tax code.

Apr. 16, 2026 at 2:20am

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A high-end, photorealistic studio still-life photograph featuring a stack of U.S. dollar bills, a calculator, and a pen neatly arranged on a clean, white seamless background, with dramatic lighting and sharp shadows to represent the financial impact of new tax breaks.The new tax deductions for tips and overtime pay aim to empower workers by allowing them to keep more of their earnings.Baltimore Today

U.S. Small Business Administration Administrator Kelly Loeffler visited Jimmy's Famous Seafood in Baltimore to highlight recent changes to the tax code that allow eligible workers to deduct up to $25,000 in voluntarily tipped income and up to more than $12,000 in overtime pay from their federal income taxes.

Why it matters

The new tax breaks are aimed at supporting workers in the hospitality industry and other sectors where tips and overtime pay are common, allowing them to keep more of their earnings and potentially boosting consumer spending.

The details

Loeffler said the changes, made under the Trump administration, have already benefited over 30 million workers before the end of Tax Day. Jimmy's Famous Seafood owner Tony Minadakis said the tax deductions will help the hospitality industry continue to employ workers and attract talent.

  • The new tax law changes went into effect in 2026.

The players

Kelly Loeffler

The current Administrator of the U.S. Small Business Administration.

Tony Minadakis

The owner of Jimmy's Famous Seafood in Baltimore.

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What they’re saying

“'Over 30 million workers already, before the end of Tax Day, have benefited from that. Hard-working waitresses, welders, construction workers – people who are now going to get paid, not punished for working hard.'”

— Kelly Loeffler, U.S. SBA Administrator

“'They get to keep it in their pocket, and it's going to get poured right into the economy. For the hospitality industry, the tips are the backbone of that industry, right? That's how we can continue to employ them and, obviously, bring great talent into the industry.'”

— Tony Minadakis, Owner, Jimmy's Famous Seafood

What’s next

The new tax deductions for tips and overtime pay are expected to remain in effect for the foreseeable future, providing ongoing support for workers in the hospitality and other industries.

The takeaway

The tax code changes championed by the SBA Administrator aim to empower workers, especially in service-based industries, by allowing them to keep more of their earnings from tips and overtime. This could boost consumer spending and help businesses like Jimmy's Famous Seafood attract and retain talent.