Overview

• Sen. Roger Marshall, joined by three GOP senators, unveiled legislation to partially fulfill Donald Trump’s campaign promise to eliminate taxes on overtime pay.
• The bill would exempt up to $10,000 of overtime income for individuals and $20,000 for married couples, with phase-outs starting at $100,000 and $200,000 respectively.
• Cost projections for the proposal vary, with measures in place to reduce potential revenue losses by about 75%, according to the Yale Budget Lab.
• Experts warn the exemption could incentivize workers to restructure their pay to maximize tax benefits without increasing total compensation.
• The legislation may be included in a broader Republican effort to extend the 2017 Tax Cuts and Jobs Act, which is set to expire this year.