LOUISVILLE, Ky. (WDRB) -- One of President Trump's most popular campaign pledges - no tax on overtime - is now law. Like everything, it comes with some catches that some workers are already complaining about.
When the "Big Beautiful Bill" passed Congress last month, one of its many provisions was a no tax on overtime policy. The Wall Street Journal says it could boost the take-home pay of millions of workers as much as 90 million dollars in total the next few years.
Many hourly workers are balking over what they call a catch in the bill. It gives a tax break on the "half" part of time and a half pay, meaning the initial hour wage is still taxed.
Not only does it not give a tax break on the first part of time and a half, but it also excludes thousands of workers. Airline employees, railroad workers, and other transportation workers don't qualify because they work under separate labor contracts.
In addition, the overtime pay deduction is capped at $12,500 a year, which means if you are a workaholic and rake in 20 grand of overtime, you get a break on just the first 12 and a half grand.
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