Ada Reporter

Rep. Russ Fulcher, a Republican from Idaho, has reintroduced a bill that aims to eliminate taxes on overtime pay. This initiative, known as the Keep Every Extra Penny (KEEP) Act, was brought forward again on Wednesday and aligns with President-elect Donald Trump's campaign support for the idea.

Fulcher stated, "Americans who choose to work overtime to support their family should be able to keep more of their hard-earned paycheck, not less." The proposal seeks to remove income tax on overtime while maintaining payroll taxes. This approach ensures that funding for Social Security, Medicare, and unemployment remains intact.

The KEEP Act specifically targets Americans eligible for overtime as defined in Section 7 of the Fair Labor Standards Act. Initially introduced last summer by Fulcher as a response to the labor shortage, the bill now has increased chances of passing with Republicans controlling both legislative chambers and the presidency.