House Republicans plan to reintroduce a bill Wednesday that would eliminate taxes on overtime pay, an idea that has gained traction among some after President-elect Trump touted it on the campaign trail.
Rep. Russ Fulcher (R-Idaho) plans to introduce the Keep Every Extra Penny Act, which would eliminate income taxes on overtime pay, among other things, according to a release first shared with The Hill. That's what he said.
“Americans who choose to work overtime to support their families should be able to keep more of their hard-earned paycheck, not less,” Fulcher said in a statement. “After years of stifling inflation, many people are seeking financial relief. This legislation will help address our country's severe labor shortage and put more money back into people's pockets. Masu.”
Fulcher first introduced A bill to eliminate taxes on overtime pay was introduced in July and is being touted as a way to help workers cope with rising costs. He was forced to reintroduce the bill again on Monday after Republicans took control of both chambers of Congress after it failed to get a vote in the last Congress.
Under the bill, Americans eligible for overtime under the Fair Labor Standards Act would be exempt from paying income taxes on their overtime. The bill does not target payroll taxes to avoid impacting Social Security and Medicare funding.
About two months after Fulcher first introduced the bill, Trump called for eliminating taxes on overtime pay for individuals who work more than 40 hours a week.
Then-Vice President Harris' campaign rejected Trump's proposal as “hopeless,” citing the Obama-era Justice Department, which was supposed to extend overtime pay to more than 4 million workers. This was in contrast to the Labor Department, which chose not to comply with the regulations.
During his campaign, Mr. Trump also proposed eliminating taxes on tipped wages and called for an end to taxes on Social Security benefits. He is also pushing to lower the corporate tax rate.
Many of President Trump's tax proposals are expected to be discussed as part of upcoming reconciliation negotiations between Congressional Republicans. The party is debating whether to package tax policy and immigration reform, including an extension of the 2017 tax cuts signed by President Trump, or split them into two separate bills.
