No Tax on Overtime for All Workers Act

# No Tax on Overtime for All Workers Act (HR 5475) **What the Bill Would Do** This bill would exempt overtime pay from federal income taxes. In other words, if you work overtime hours and earn extra pay beyond your regular 40-hour workweek, that overtime income would not be subject to federal income tax. The proposal aims to keep more money in workers' pockets by reducing their tax burden on earnings they make for working additional hours. **Who It Affects and Current Status** The bill would affect any worker who receives overtime compensation—typically hourly employees in industries like manufacturing, retail, healthcare, and construction. It was introduced by Representative Nicole Malliotakis (R-NY) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives.

At this stage, the bill is still under review and has not advanced to a floor vote. **Why This Matters** The bill's main appeal is straightforward: it would increase take-home pay for overtime workers. However, it would also reduce federal tax revenue, which could affect government spending or require funding cuts elsewhere. The long-term impact would depend on how many workers regularly earn overtime and how much revenue would be lost.