Former President Donald Trump has said he plans to end taxes on overtime wages for individuals who work more than 40 hours a week if he is elected to the White House again.
Trump made the comments during a campaign rally in Tucson, Arizona on Sept. 12, telling the crowd that working class Americans deserve to “catch a break.”
“Today, I’m also announcing that as part of our additional tax cuts, we will end all taxes on overtime. You know what that means? Think of that,” the Republican said. “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 said ending taxes on overtime wages would potentially generate a “whole new workforce” in the United States.
He went on to praise the hard work of police officers, nurses, factory workers, construction workers, truck drivers, and machine operators.
“The people who work overtime are among the hardest working citizens in our country, and for too long no one in Washington has been looking out for them,” he continued.
Trump did not provide further details as to how the tax policy would work.
Currently, overtime income—which is defined as nonexempt under the Fair Labor Standards Act—is taxed at the same rate as standard income, and any change to the tax law requires an act of Congress.
Elsewhere during the rally in Tucson, Trump repeated his promise to end taxes on tipped wages and eliminate taxes on Social Security benefits.
The Republican has said on multiple occasions that he plans to scrap both taxes immediately after taking office if he were to win the presidential election in November.
Impact of Harris, Trump Tax Policies
Under current law, tips are considered normal income and subject to standard income tax law.
Meanwhile, around 40 percent of Americans who receive Social Security payments have to pay federal income taxes on those benefits, according to the Social Security Administration.
This typically happens for Americans who have “other substantial income” in addition to their monthly benefits, including wages, earnings from self-employment, interest, dividends, and other taxable income, according to the agency.
Currently, under federal law, retired individuals who earn less than $25,000 per year, or $32,000 for married couples, pay no taxes on their Social Security payments.
Vice President Kamala Harris, the Democratic nominee for president, has also called for similar proposals such as scrapping taxes on tips and Social Security benefits in recent months.
According to a Sept. 10 analysis from the Tax Foundation, Harris’s tax policies would raise $2.2 trillion of tax revenue from corporations and $1.2 trillion from individuals from 2025 through 2034.
The “economic harm from Harris’s tax hikes would also greatly reduce the ability to address an emerging debt crisis,” according to the Tax Foundation.
The same foundation noted that Trump is yet to release a fully detailed plan regarding his tax proposals but has “floated several tax policy ideas.”
His proposed tax cuts would decrease federal tax revenue over the 10-year budget window by $6.1 trillion on a conventional basis and by $5.3 trillion on a dynamic basis, according to the non-profit.
“Overall, Trump’s policies would reduce distortions in one part of the tax system, namely income taxes, only to replace them with new distortions in another part of the tax system, namely tariffs,” the foundation wrote. “The combination of policies under consideration risks shrinking the economy and growing the debt.”
Jack Phillips contributed to this report.
Hmm…. Now that would be something. The “help wanted” signs everywhere may decrease but, Hmm…. that would be something.
It a reverse of socialist redistribution of wealth from the productive to the unproductive socially government dependent,, but this time the productive glean the overtime benefit while the unemployed slackers get nothing,,, but an incentive to get off their arses and get jobs.
I;d like to know how he’d do this?
ONE Of the guys i game with, works a STANDARD 32hr work week at his firm. ANother works 40 hrs, and my neighbor who’s a lawyer, works STANDARD 54hrs.. SO WHAT would count for overtime??
Trump like JFK understands that high government taxes to support new policy inflated government salaries, actually glean less tax money in the end, because when those new government salaries eat up the income, it gets consumed, devoured turned into human waste, and ends up down the democrat brain dead, drain dead septic tanks that feed the now undrainable Washington swamp. The circle of tax life ends. Trump like Kennedy understands when you lower taxes to encourage work and production THE PEOPLE not the government spend the money on more manufactured items, whose employees pay more income taxes to the government, while the businesses also pay taxes upon the income of the products produced, that if they are parts of another item like automobiles, create more jobs when the automobiles are assembled, to build more trucking jobs to transport the goods to market, and retail jobs to sell the product which creates even more jobs, as the economic circle of life of those tax dollars multiplies at each stage of the goods production. Money spent on worthless temporary short term Presidential campaigning, like government jobs, creates no circle of life of those tax dollars spent, which is why government who can only CONSUME our tax dollars, should get out of the way of the Capitalists who create and prolong the tax benefits of it, by keeping as much tax dollars in the hands of the spending consumer who will multiply the tax cycles, and into the hands of the businesses that grow it.
“when the people find that they can vote themselves money, that will herald the end of the republic,”
–Ben Franklin
“The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”
― Alexis de Tocqueville
Two of my favorite quotes…
Trump wants to allow the workers to keep THEIR money, instead of the left redistributing it for votes.
Socialism works till you run out of other people’s money.
AN OFTEN Overlooked quote that should be in that list.
“Give a man a fish he eats for a day, Teach a man to Fish and he eats for the rest of his life.”
Create a manufacturing job and you have created something tangible that you can touch, that can continue to work and create wealth for you.
Create another government job and all you create is more paper to push, nothing tangible that you can hold or touch that will enrich you in the future. All you create are legions of paper pushers who can only sit idly by counting then consuming the tangible wealth created by REAL creators, just CONSUMERS of others and their wealth,,,, who can only sit idly by and watch our smoke, while all their political paper pushers burn up our dollars into smoke and ashes while they put the touch on YOU, and smoke you out of your wealth. What father whose son asks for some bread and is given a stone?,,,or asks for a fish and is given a serpent? Women like Kamal and Guys like Joe Biden, who gave his son way too much bread, got him stoned, when caught tried to crawfish out of his just punishments, and like Kamala’s nanny impregnating husband, slipped way too many women his snake. I think I just described the true meaning of Bidenomics, where the laborers get aborted, and paper pushers all get rich.
AND the worst part of it, ONCE SOMETHING in the govt is created, it practically seems imposible to EVER GET rid of it.