At a campaign rally, former President Donald Trump announced plans to eliminate taxes on overtime pay if he wins a second term in November. He believes this will provide workers with a greater incentive to work and make it easier for companies to attract employees. The Trump campaign did not provide details about the plan when asked for clarification.
The Harris campaign criticized Trump’s proposal as a “snake oil sales pitch,” referencing his past actions that they believe harmed workers. They pointed to a 2019 Trump administration overtime pay rule that replaced a more extensive proposal from the Obama administration. Trump made this announcement at his first rally following his debate against Vice President Kamala Harris, which drew a larger audience than the Arizona crowd where he unveiled his tax-free overtime pledge.
The Fair Labor Standards Act of 1938 established a 40-hour workweek and overtime pay standards, ensuring workers receive at least 1.5 times their regular pay rate for overtime hours. The Biden administration recently implemented a rule that raised the minimum salary threshold for time-and-a-half pay, benefiting lower-paid workers. Trump previously called to end taxes on tips, a proposal supported by Harris. The Harris campaign also advocates for expanding the Child Tax Credit to provide a $6,000 tax cut to families with newborn children, while ensuring those earning less than $400,000 a year do not pay more in taxes.
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