Trump Proposes Ending Taxes on Overtime Pay if Elected

Tucson, AZ — Republican presidential candidate Donald Trump announced on Thursday that he plans to eliminate all taxes on overtime pay if he wins the November 5 election. Speaking at a rally in Tucson, Arizona, Trump vowed, "As part of our additional tax cuts, we will end all taxes on overtime. Your overtime hours will be tax-free."

Trump, who is in a tight race with Democratic Vice President Kamala Harris, has previously advocated for legislation to remove taxes on tips for service workers, a stance shared by Harris.

In response to Trump’s latest proposal, a spokesperson for Harris criticized him, suggesting that Trump is trying to mislead voters. "He is desperate and scrambling, saying whatever it takes to try to trick people into voting for him," the spokesperson said.

Harris, addressing a union worker event earlier this month, accused Trump of hindering overtime benefits during his presidency from 2017 to 2021. In 2019, Trump's administration updated the rule for overtime pay eligibility, raising the salary threshold to $35,568 annually from the previous $23,660. This change was seen as less favorable compared to President Barack Obama's proposed threshold of over $47,000, which would have made many more workers eligible for overtime. The Obama-era rule was eventually invalidated in court.

Trump's proposal to eliminate taxes on overtime pay, which typically benefits low-income workers such as fast-food employees and nurses, is a new federal policy initiative. Currently, eligible workers must receive time-and-a-half pay for hours exceeding 40 in a week.

The impact of Trump's plan on government revenue remains uncertain. According to the Congressional Budget Office, extending Trump’s previous tax cuts would increase the U.S. deficit by $3.5 trillion through 2033. The current U.S. budget deficit stands at $1.9 trillion for the first 11 months of this fiscal year.

This proposal follows Alabama's recent decision to temporarily exempt overtime wages from state taxes, a measure intended to address job market challenges.