FOR IMMEDIATE RELEASE:
CONTACT: Christianné Allen, Christianne.Allen@mail.house.gov
CONTACT: Marisa Melton, Marisa.Melton@mail.house.gov
Fulcher Reintroduces Historic Bill to Eliminate Tax on Overtime
WASHINGTON, D.C.—Today, U.S. Congressman Russ Fulcher (Idaho-01) reintroduced his historic legislation to eliminate the federal income tax on overtime pay.
The bill, the Keep Every Extra Penny (KEEP) Act, was originally introduced in the 118th Congress by Congressman Fulcher and quickly picked up steam after President-Elect Donald J. Trump announced support of the policy objective. Specifically, the KEEP Act will eliminate income taxes rather than payroll taxes to ensure that Social Security, Medicare, and unemployment funding remain unaffected.
Congressman Fulcher issued the following statement after reintroducing the bill in the 119th Congress.
“Americans who choose to work overtime to support their family should be able to keep more of their hard-earned paycheck, not less,” said Congressman Fulcher. “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.”
Background
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The bulk of the federal government's tax revenue comes from the 40-hour work week, not overtime.
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Americans currently eligible for overtime, as defined in the Fair Labor Standards Act under section 7, will be covered under the KEEP Act.
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The Fair Labor Standards Act lead to the establishment of overtime and the 40-hour work week during the Great Depression to provide relief to both the employee and employer. The KEEP Act aims to amplify this relief while our nation faces similar circumstances.
Read Congressman Fulcher's statement from the 118th Congress here.
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