By Brett Samuels | The Hill
A Republican congressman is reintroducing legislation Wednesday that would eliminate taxes on overtime pay, an idea that has gained momentum among some lawmakers after President-elect Trump touted it on the campaign trail.
Rep. Russ Fulcher (R-Idaho) is set to unveil the Keep Every Extra Penny (KEEP) Act, which would specifically get rid of income tax on overtime wages, according to a release shared first with The Hill.
“Americans who choose to work overtime to support their family should be able to keep more of their hard-earned paycheck, not less,” Fulcher said in a statement. “After years of suffocating inflation, many are looking for financial relief. This legislation will help address our nation’s significant workforce shortage and put more money back in people’s pockets.”
Fulcher first introduced legislation to eliminate taxes on overtime wages last July, pitching it as a way to aid workers dealing with higher costs.
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Under the legislation, Americans eligible for overtime under the Fair Labor Standards Act would be exempt from income taxes on overtime. The legislation would not target payroll taxes in an effort to leave Social Security and Medicare funding unaffected.
Roughly two months after Fulcher first introduced his bill, Trump called for ending taxes on overtime wages for individuals who work more than 40 hours a week.
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