Trump advertises “no tax on overtime”. But he made millions of millions to earn overtime.

One of the most remarkable functions President Donald Trump's “Big Beautiful Bill”, which was adopted by the house early Thursday, is a number of tax cuts that frees tips, overtime and social security from tax. The White House said no tax on overtime and tips “use two of President Trump's Cornerstone campaign, promise and benefit hard -working Americans where they need it the most – their salary checks.”

The so -called populist tax measures have collected headlines and praised by republican legislators as well as unions that represent the police and firefighters. And legislators in 19 countries from Massachusetts to Mississippi, according to the Economic Policy Institute, have proposed their own “no tax on overtime” this year.

Apart from one or two legal blogs, the Trump government for millions of American workers has received overtime – and has received far less attention from the tax measure, apart from one or two legal blogs.

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The US Ministry of Labor has its appointment of a verdict by a Texan judge who reversed the change in the overtime management of the biden government to the overtime rule, in whose calling during the break, which expanded the right to overtime for 4.3 million American employees. The rule had increased the salary threshold for overtime exemption from $ 35,568 to $ 43,888 on July 1, 2024 and then on January 1, 2025 to $ 58,656.

A spokesman for the Ministry of Labor did not immediately give back inquiries from Capital & Main for a comment.

The rule was led by Julie Su, the Labor Administration of Biden Administration, which determined the irony of Trump's tax proposal for overtime payment, which Capital & Main announced:

“You cannot benefit from” no taxes at overtime “if you have not even paid overtime.”

She added: “If you work longer, you should be paid for it. That is why we have expanded overtime to 4 million other Americans. This administration has gone away from this rule and shows again that you have no administration of billionaires and have to rely on them to fight for workers. The number of employees who are used for overtime means less money in workers.”

Judy Conti, director of the state affairs of national labor law project, described the tax measure as a “Gimmick” and found that the Trump management is “easier to classify people as an independent contractor instead of employees, and they are not entitled to overtime at all.”

Trump's allies in the house, including paths and middle chairman Jason Smith, claimed that the measure could have more than 80 million hours of workers. In reality, however, only 8% of them regularly earn overtime payments according to the Budgetlabor in Yale.

“That doesn't help me”

Among these workers is Terri, a cashier in a dollar tree business in Brooklyn, who was not asked when he was asked for “no tax on overtime”.

“So what? That doesn't help me. I don't even work overtime, no matter how many hours I work.”

The employees who would benefit from the liberation are usually employed in sectors such as manufacturing, mining and public security. One of the volume supporters of the measure is the international association of firefighters, whose members often work over time for many hours a month.

“Firefighters work 53 hours a week before they have paid themselves for overtime. That is 35% more hours a week than the average worker. The proposal to eliminate taxes for overtime would bring meaningful relief to the firefighters. in the NBC news, in the NBC news.

The measure will be estimated in the next 10 years an estimated 866 billion US dollars per budget tablator in Yale.

And government measures could affect devastating effects on their budgets and their ability to pay important services. In Alabama that was the first state that had released overtime from government tax, the measure cost the state in the first nine months of 2024 and, according to Economic Policy Institute, reduced millions for the financing of the state education fund.

In the end, the exception of overtime of taxes is “not a real Pro worker directive”, write David Cooper and Nina Mast from EPI. “Instead, it is an giveaway for companies that create new inequalities in the tax code, while they would expand the power of the employer and arrive for all things – schools, infrastructure, security, health -, workers, their families and their communities.”

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