Rep. Russ Fulcher, U.S. Representative for Idaho's 1st District | Official U.S. House headshot
Rep. Russ Fulcher, U.S. Representative for Idaho's 1st District | Official U.S. House headshot
A Republican congressman plans to reintroduce a bill that seeks to eliminate taxes on overtime pay. The proposal has gained attention among lawmakers after being mentioned by President-elect Trump during his campaign.
Representative Russ Fulcher of Idaho will present the Keep Every Extra Penny (KEEP) Act, aiming to remove income tax on overtime wages. This initiative was announced in a release shared 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," stated 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."
Fulcher initially introduced similar legislation last July, suggesting it as a means to assist workers facing increased costs.
The proposed law would exempt Americans eligible for overtime under the Fair Labor Standards Act from income taxes on their additional earnings. Payroll taxes would remain unaffected to ensure continued funding for Social Security and Medicare.
About two months following Fulcher's initial introduction of the bill, Trump advocated for ending taxes on overtime wages for those working beyond 40 hours per week.
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