Bill 119 HR 561, also known as the Overtime Pay Tax Deduction Act, aims to amend the Internal Revenue Code of 1986 to create a new deduction for certain overtime payments. The bill proposes that individuals who receive overtime pay for working more than 40 hours in a week would be eligible for a tax deduction on that additional income.
The purpose of this legislation is to provide relief for workers who put in extra hours to support themselves and their families. By allowing a deduction for overtime pay, the bill seeks to incentivize employers to offer more overtime opportunities and compensate employees fairly for their hard work.
If passed, this bill would impact individuals who work overtime in a wide range of industries, from healthcare and retail to manufacturing and hospitality. The deduction would apply to both hourly and salaried employees who exceed the standard 40-hour workweek.
Supporters of the Overtime Pay Tax Deduction Act argue that it would help alleviate financial burdens on working families and encourage economic growth by putting more money back into the pockets of hardworking Americans. Critics, however, may raise concerns about the potential impact on government revenue and the complexity of implementing and enforcing the new deduction.
Overall, Bill 119 HR 561 represents an effort to address the challenges faced by workers who rely on overtime pay to make ends meet. As the legislation moves through the legislative process, it will be important to consider the potential benefits and drawbacks of this proposed tax deduction for overtime payments.