GOP senators unveil legislation to cut taxes on overtime payin line with Trumps campaign promise

Republican senators introduced legislation on Tuesday that would create an income tax deduction for overtime wage earners – a bill they say fulfills President Trump’s “no tax on overtime” campaign pledge. The Overtime Wages Tax Relief Act, introduced by Sens.Roger Marshall (R-Kan.) and Tommy Tuberville (R-Ala.), would allow individuals to deduct up to $10,000 in overtime pay from their tax bill. Married couples would be able to deduct up to $20,000.  The legislation includes phase-out eligibility based on income.

So, once individual adjusted gross income reaches $100,000, or $200,000 for married couples, the deduction is reduced by $50 for every $1,000 in earnings above the threshold. “This is one of President Trump’s priorities, and it’s one of my priorities as well,” Marshall said at a press conference unveiling the legislation. “You know what this would mean to a family?”“Potentially, for a person that’s working overtime, they could save another $4,000 on taxes if this legislation is signed into law by the president.” Coupled with savings from extending the Trump tax cuts, Marshall described his plan as a “$6,000 opportunity for hard-working folks back home.”“If you’re making $80, 90, or 100,000 a year back home, $6,000 is nothing to sneeze at,” Marshall added.“That will go a long way in taking care of Joe Biden’s inflation.”Tuberville noted that Trump “campaigned and won on a promise to cut taxes for millions of Americans working overtime — and we are delivering on that promise.”“Thousands of Alabamians put in way more than 40 hours a week in order to save for retirement, put their kids through college, and keep the trains running,” the Alabama senator said in a statement.

“They should not be punished with higher taxes for working longer hours.” The legislation is also backed by the International Brotherhood of Teamsters. “Thanks to the leadership of Sen.Marshall and a commitment by President ...