Former President Trump on Thursday called for eliminating taxes on overtime pay for individuals who work more than 40 hours a week, his latest proposal to significantly cut personal taxes if re-elected.
“We're going to eliminate all taxes on overtime. Do you know what that means? Think about it. It gives people an incentive to work, it gives businesses a lot of benefits, it makes it a lot easier to recruit talent,” Trump said at a rally in Arizona.
“The people who work overtime are some of the hardest working citizens in our country, and for too long no one in Washington cared about them,” he added.
The proposal would require congressional action, and Trump gave no further details about how that would work.
Rep. Russ Fulcher (R-Idaho) said earlier this year The bill was submitted He argued that his proposal would eliminate income taxes on overtime pay and help workers combat rising costs, a measure he noted has never been tried at the federal level.
President Trump has proposed eliminating taxes on tipped wages in recent months and has called for eliminating taxes on Social Security benefits.
Democratic presidential nominee Vice President Harris later echoed Trump's call to end the tip tax and called for raising the minimum wage, with her campaign saying her proposal would include income limits and provisions to prevent companies from taking advantage of the policy.
The Committee for a Responsible Federal Budget estimated that removing tipped income from federal revenue and raising the minimum wage could increase the national deficit by $100 billion to $200 billion over a decade.
on the other hand, Tax Foundation established Eliminating taxes on Social Security benefits could increase the deficit by $1.6 trillion over 10 years and hasten the collapse of the Social Security system.
