Tuberville backs bill removing taxes on overtime as Alabama extension dies: ‘Hard work matters’
Alabama U.S. Sen. Tommy Tuberville Tuesday joined several colleagues to lend his support to a bill that would exempt overtime wages from federal taxes.
Joined by Sen. Roger Marshall (R-Kans.), Sen. Pete Ricketts (R-Neb.) and Sen. Jim Justice (R-W.V.) at a Tuesday morning news conference, Tuberville endorsed the Overtime Wages Tax Relief Act.
The bill, which would run through 2029, would cap the overtime deduction at 20% of the individual’s regular wages from the same employer.
It would also not be allowed for an individual with adjusted gross income exceeding $100,000, or $150,000 for a head of the household and $200,000 for a married couple filing a joint return.
Tuberville called the legislation a “common sense” bill that “sends a message to the country that hard work matters.”
“We’ve got a lot of folks in this country that are working their tails off, nurses, production workers, people who work online, people who work in factories,” he said. “And what do they get? A bigger tax bill to pay to fund this nonsense that we call the federal government up here.”
The bill would “give relief to people that actually are not laying on a couch, but are putting in the extra time to make this country work.”
Marshall said the bill would potentially save taxpayers up to $4,000 a year in taxes.
Ending taxes on overtime pay is an idea endorsed by President Donald Trump, and Tuberville said the legislation was modeled on a similar bill in Alabama.
That legislation runs out June 30, and a bill that would keep the exemption in place has not advanced during the legislative session.