Trump Proposes Eliminating Taxes on Overtime Pay, Raising Skepticism

The former president's plan aims to ease the tax burden on hourly workers but faces criticism over potential economic distortions and revenue losses.

Donald Trump announced a proposal to eliminate federal income taxes on overtime pay during a campaign event in Arizona.
Economists and analysts are concerned about the potential for significant revenue losses and the plan's feasibility without detailed implementation strategies.
Critics argue the policy could create inequities, favoring workers who can log extra hours and disadvantaging those unable to work overtime due to other responsibilities.
The proposal is part of a broader tax policy agenda from Trump, which includes eliminating taxes on tipped wages and expanding the Child Tax Credit.
Experts warn that the plan could lead to employers restructuring wages to minimize taxable income, potentially exacerbating wage disparities and administrative complexities.