Trump’s tax attack on Watson lacks backing in campaign material

In a Truth Social post on 2 November 2026, Trump endorsed Republican congressman Mark Harris for re-election in North Carolina’s eighth congressional district. He said Harris’s Democratic opponent, Watson, opposed ending taxes on tips, overtime and Social Security, and predicted the measures would be “terminated” if Watson and the Democrats gained power. The post, recorded by the Trump’s Truth archive, linked to the Swamp the Vote USA voting page ahead of the 3 November election.

Watson’s campaign issues page calls for wages people can live on but does not mention the three deductions; other candidate information reviewed did not establish his position on them. Trump also accused Watson of wanting open borders, although his platform calls for a secure southern border, more staff and technology, and stronger enforcement against traffickers.

In a separate endorsement of Republican Jennifer Balkcom, Trump made an almost identical tax accusation against Jamie Ager, a Democrat running in North Carolina’s 11th district. Ager’s platform, recorded by Ballotpedia in September, says he supports “no tax on tips — real tips, not bonuses for CEOs”. That contradicts the claim that Ager opposes the idea, though it does not establish Watson’s views or Ager’s position on the precise 2025 law.

In July 2025, Harris voted for the broad tax-and-spending package containing the deductions, while all 212 Democrats in the House voted against it. Watson was not among the members voting, and the vote concerned the whole package, not the deductions individually. Earlier, Democratic senator Jacky Rosen and Republican Ted Cruz introduced a separate tips-deduction bill, which the Senate passed without objection. Rosen said she wanted it treated separately because she objected to the larger bill’s Medicaid and food-assistance provisions.

What the tax law provides

The enacted measures are not blanket tax exemptions. The 2025 law allows eligible filers to deduct up to $25,000 in qualifying tips and up to $12,500 in qualifying overtime pay, or $25,000 on a joint return. The overtime deduction covers only the federally required premium above the regular rate. Both deductions are reduced at higher incomes, and Social Security and Medicare payroll taxes generally still apply to tips and overtime.

The law also offers an additional income-tax deduction of up to $6,000 per eligible person aged 65 or over, subject to income limits. It is available whether or not someone receives Social Security, the US retirement and disability benefits programme, and it does not eliminate tax on those benefits. Depending on circumstances, up to 85% of benefits may still be included in taxable income, according to the Internal Revenue Service.

The US Treasury reported in July that more than 7.5 million filers had claimed the tips deduction and more than 29 million had claimed the overtime deduction for 2025. It said more than 35 million seniors had claimed the additional senior deduction. The groups can overlap.

Without an extension, all three deductions will lapse after the 2028 tax year under the law Trump signed. Congress could extend them or repeal them sooner, but Watson could not make either change on his own.