Recently, the Double Wage for Overtime Act was introduced by Rep. Casar (D-Texas) in the House and by Sen. Gallego (D-Ariz.) in the Senate. The Act would strengthen overtime protections for more than 13 million workers by amending the overtime rate for the first time since 1938. It would raise overtime pay from 1.5 times a worker’s regular rate of pay to double the regular rate.
How does this compare with “No tax on overtime”?
The legislation is far better for working people than Republicans’ “no tax on overtime” policy. Although a tax deduction may sound like a compelling way to help people who work overtime, it is a deeply flawed policy with very uneven benefits. It largely benefits middle-to-high-income earners, provides only modest tax savings for those workers who do qualify, leaves some workers worse off, and preserves financial gains for employers who overwork employees. Strengthening overtime standards—instead of offering gimmicky tax cuts—is the real way to deliver for working people.
