Trump Says He Will End Taxes On Overtime Pay, But Economist Peter Schiff Says There Is A Fly In His Ointment

Former President Donald Trump has suggested the removal of taxes on overtime wages for individuals working beyond 40 hours a week. This proposal is part of Trump’s tax reduction strategy if he secures re-election.

What Happened: Trump announced this proposal at an Arizona rally, stating that it would incentivize people to work more and simplify the hiring process for companies. “The people who work overtime are among the hardest working citizens in our country, and for too long no one in Washington has been looking out for them,” Trump said, according to a report by The Hill.

The proposal, which needs congressional approval, lacks further details about its execution. Earlier this year, Rep. Russ Fulcher (R-Idaho) introduced a similar bill to eliminate income taxes on overtime pay, marking it as a first-time attempt at the federal level.

Economist Peter Schiff reacted to the Trump proposal, he said in a comment on X on Thursday, ” Trump just proposed no income taxes on overtime pay. But most employees can’t work overtime, as their employers don’t want to pay time and a half. So employees moonlight instead, working extra hours at normal pay for other employers. Employees lose out due to unpaid travel time.”

Trump has also recently proposed ending taxes on tipped wages and called for the elimination of taxes on Social Security benefits. Vice President Kamala Harris, the Democratic presidential nominee, later echoed Trump’s call for eliminating taxes on tips and proposed an increase in the minimum wage.

See Also: Trump Vs. Harris Debate’s Results Are In: Flash Poll Shows Resounding Majority Pick Vice President As Win

Why It Matters: Trump’s proposal to exempt overtime wages from taxes comes in the backdrop of his previous proposal to end taxes on tipped wages, which according to a Benzinga report, could inflate the federal deficit by $150 billion to $250 billion over the next decade. Additionally, the proposal to eliminate taxes on Social Security benefits could further increase the deficit by $1.6 trillion over the same period.

As the presidential race tightens, economic policies have become a major point of contention between Trump and Vice President Harris. The Vice President is gaining ground on economic issues, traditionally Trump’s stronghold. Both candidates have laid out their visions for addressing inflation, taxes, and job creation and have sparked debate across the political spectrum.

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal