Sen. Roger Marshall (R-KS) is proposing legislation to enact President Donald Trump’s campaign promise to end the tax on overtime wages.
Marshall’s proposal would deny the new deduction to some top earners and cap it at $10,000 for individuals and $20,000 for married couples, according to the Wall Street Journal. The break for overtime pay would additionally be phased out once an individual’s adjusted gross income surpasses $100,000 or when a married couple’s income reaches $200,000.
This would apply to many taxpayers at the 22% marginal tax rate. They would see a deduction of $20,000 in overtime pay, which would save them up to $4,400 in taxes.
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Tax experts had warned about the implications of enacting no taxes on overtime. Erica York, an economist at the
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