Donald Trump has recently introduced the ‘no tax on overtime’ policy at a rally, generating considerable interest and debate. As the proposal gains attention, many are curious about how this policy could influence workers and its impact.
Here is more about Donald Trump’s ‘no tax on overtime’ policy.
What is the ‘no tax on overtime’ policy by Donald Trump?
Former President Donald Trump recently unveiled a new economic policy proposal during a speech in Tucson, Arizona, announcing that he would eliminate taxes on overtime pay. This policy is part of a broader tax cut initiative that Trump claims will benefit both workers and companies. He argued that removing taxes on overtime would provide a stronger incentive for employees to work extra hours and make it easier for businesses to attract and retain staff. (via ABC News)
In his remarks, Trump described overtime workers as some of the “hardest-working” individuals in the country and said no one in Washington is addressing their needs. The former U.S. President said, “Today, I’m also announcing that as part of our additional tax cuts, we will end all taxes on overtime. That gives people more of an incentive to work; it gives the companies a lot. It’s a lot easier to get the people.”
Trump also referenced previous proposals to end taxes on tips and Social Security benefits. While Trump presented this new policy as a key part of his economic agenda, he did not provide specific details on how the elimination of overtime taxes would be enacted.
Additionally, Trump’s speech included attacks on Vice President Kamala Harris and comments linking immigration to housing costs, despite city officials denying his claims. He also reiterated his refusal to participate in future debates.
Notably, in 2019, the Trump administration revised the overtime pay rules, extending eligibility to an extra 1.3 million workers. They raised the salary threshold for overtime exemption to $35,568 annually, up from the previous $23,660. This adjustment was less expansive than a proposal from President Obama’s administration, which aimed to include more workers under overtime pay protections. (via Reuters)
