Republicans Propose 'No Tax on Overtime' Legislation

Republican lawmakers, backed by former President Donald Trump, have introduced legislation in both the House and Senate to eliminate federal income taxes on overtime pay, fulfilling a key Trump campaign promise for 2024. The proposed bills would allow individual workers to deduct up to $10,000 and married couples up to $20,000 of overtime earnings from taxable income, with the deduction phasing out for higher earners above $100,000 for individuals and $200,000 for couples. Supporters argue this measure will reward hardworking Americans and ease financial strain from inflation, particularly for professions like law enforcement, nurses, and factory workers. Critics caution that the policy could significantly reduce federal revenue, with estimates ranging from $680 billion to $1.55 trillion over a decade, potentially necessitating budget cuts elsewhere. While the legislation targets middle-income earners and aims to contain costs, some observers contend broader tax reform is needed to truly help working Americans. The bills currently have no Democratic support but are considered central to Trump’s pro-worker policy agenda.