House GOP Budget Proposal Includes No Tax on Overtime Pay, Aligns with Trump’s Agenda
House Republicans have unveiled a sweeping budget proposal that not only prioritizes tax cuts and spending reductions but also includes a major win for American workers—no tax on overtime pay. The move aligns with President Donald Trump’s economic agenda, which has focused on boosting take-home pay and reducing tax burdens for middle-class Americans.
The budget plan, which House GOP leaders call a “pro-growth, America-first” blueprint, also aims to extend Trump-era tax cuts, cut government spending, and reform entitlement programs. But it’s the overtime tax exemption that has drawn the most attention, as it could significantly impact millions of hourly workers.
What Does No Tax on Overtime Mean for Workers?
Currently, workers who put in extra hours pay standard income tax rates on their overtime wages, just like their regular pay. Under the proposed plan, overtime earnings would be completely tax-free, allowing employees to take home 100% of their extra earnings.
Dan Bongino Appointed as FBI Deputy Director by President Trump
Key Benefits of this Plan:
- Bigger Paychecks: Workers who rely on overtime will see higher take-home pay without deductions.
- Incentive to Work More: Employers may see an increase in worker productivity as employees take on extra shifts without the tax penalty.
- Middle-Class Relief: Many low- and middle-income earners, who disproportionately rely on overtime, would benefit the most.
House Speaker Mike Johnson praised the provision, saying, “Hardworking Americans shouldn’t be penalized for putting in extra hours. This plan rewards effort and helps families get ahead.”
Hagan Scotten Resigns Amid Turmoil Over Eric Adams Case
Other Key Provisions in the House GOP Budget
Beyond overtime tax relief, the proposed budget plan focuses on several key pillars of Trump’s economic strategy:
- Trump-Era Tax Cuts Extended: The 2017 tax reductions, set to expire in 2025, would be made permanent.
- Federal Spending Cuts: The plan calls for deep reductions in discretionary spending, including healthcare and social welfare programs.
- Entitlement Reforms: Medicare and Social Security would see structural changes aimed at reducing long-term costs.
- Defense Increases: Military spending would rise significantly, continuing Trump’s push for a stronger defense.
Tulsi Gabbard Confirmed as Director of National Intelligence: What It Means
Democrats Push Back, Calling It a “Tax Giveaway”
Democrats immediately criticized the proposal, calling it a tax break for the wealthy disguised as worker relief. House Minority Leader Hakeem Jeffries argued that the no-tax overtime provision benefits only a fraction of workers while gutting social programs.
“This is just another attempt to help billionaires while cutting essential services for everyday Americans,” Jeffries stated.
Progressives also expressed concerns that eliminating taxes on overtime could lead to businesses cutting base wages, forcing workers to rely more on extra hours.
Will No-Tax Overtime Become Law?
While the proposal has strong backing from Trump and House Republicans, it faces an uphill battle in the Senate, where Democrats hold a narrow majority. The bill would need bipartisan support to pass, making negotiations critical in the coming weeks.
President Trump, however, remains optimistic. “This is a game-changer for American workers,” he posted on Truth Social. “No tax on overtime. Bigger paychecks. More freedom.”
As the debate unfolds, millions of workers will be watching closely to see if no tax on overtime becomes reality—or just another political talking point.
TNN is your hub for viral chaos—from No Tax on Overtime Pay, Political news to Canada news today and US news today. We decode the drama so you don’t have to. Trust the news, trust us.
Canada Updates, Politics 
2 thoughts on “House GOP Budget Proposal Includes No Tax on Overtime Pay, Aligns with Trump’s Agenda”