The former president told a crowd in Arizona that working class Americans deserve to âcatch a break.â
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 âcatch a break.â
âToday, Iâm 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,â the Republican said. âThat gives people more of an incentive to work, it gives the companies a lot, itâs a lot easier to get the people.â
Trump said ending taxes on overtime wages would potentially generate a âwhole new workforceâ 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.
âThe 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,â he continued.
Trump did not provide further details as to how the tax policy would work.
Currently, overtime incomeâwhich goes to employees who are nonexempt under the Fair Labor Standards Actâis taxed at the same rate as standard income, and any change to the tax law requires an act of Congress.
Also during the Tucson rally, Trump repeated his promise to end taxes on tips and Social Security benefits for seniors.
Impact of Harris, Trump Tax Policies
Under current law, tips are considered normal income and subject to standard income tax rates.
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.
The âeconomic harm from Harrisâs tax hikes would also greatly reduce the ability to address an emerging debt crisis,â according to the foundation.
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 nonprofit.
âOverall, Trumpâs 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,â the foundation wrote. âThe combination of policies under consideration risks shrinking the economy and growing the debt.â
Jack Phillips contributed to this report.
Original News Source Link – Epoch Times
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