by Antonio Pequeño IV at Forbes
- Trump said during a speech Thursday his administration “will end all taxes on overtime” if he is elected president, calling overtime workers “among the hardest working citizens in our country.”
- Trump did not provide further details on the proposal, which he also framed as “so good” for employers and beneficial for nurses, construction workers, police officers and factory workers.
- The former president made the new proposal after repeating his plans to exempt tip and Social Security income from federal taxes, which he announced over the summer.
How Is Overtime Pay Taxed?
Overtime work income—money required to be given to employees who work more than 40 hours in a week and are defined as nonexempt under the Fair Labor Standards Act—is taxed at the same rate as regular income.
Key Background
Trump has gone big on tax cut proposals during his campaign, but tax experts believe Trump’s tax policies would create $1.6 billion in losses for Social Security and Medicare between 2026 and 2035. Trump has also proposed reducing the corporate tax rate from 21% to 15% for companies that produce their products in the U.S.
What Has Kamala Harris Proposed?…
_______________________________________
🚨BREAKING: President Trump announces that he will eliminate taxes on overtime pay:
"When you pass 40 hours a week, your overtime hours will be tax free."
How long until Kamala steals this one?pic.twitter.com/sK448SFhl6
— Greg Price (@greg_price11) September 12, 2024