Trump proposes ending taxes on overtime pay

Former president Donald Trump pitched yet another idea meant to win over hourly workers that surprised his own advisers: Stop taxing overtime.

“We will end all taxes on overtime.

You know what that means?” he said Thursday during a campaign stop in Arizona. “That gives people more of an incentive to work. It gives the companies, it’s a lot easier to get the people. … It would be unbelievable. You’ll get a whole new workforce by doing no taxes on overtime.”

Though no details were provided, the proposal marks the Republican presidential nominee’s latest overture to low- and middle-income voters. Last month, he called on the federal government to carve out similar exemptions on tip earnings and on Social Security payments, regardless of income level.

On Friday, economists questioned how it would work.

“If you did not put any guardrails on this, it would be a huge revenue loser,” said Brendan Duke, senior director for economic policy at the left-leaning Center for American Progress. Such a shift, he said, could lead employers to classify as much of a worker’s wages as overtime as possible.

“As long as you’re not violating the federal minimum wage or the state minimum wage, it’s off to the races.”