WASHINGTON, D.C. – No tax on overtime included in The One, Big, Beautiful Bill gives overtime hourly employees a $1,400 tax cut and creates a huge incentive for American workers to power the manufacturing boom to come from President Trump’s tax and trade agenda. 

“No tax on overtime is another way that President Trump and Republicans in Congress are standing up for working men and women and helping them build a better life,” said Ways and Means Committee Chairman Jason Smith (MO-08). “That tax provision puts $1,400 back into the pockets of the lineman, police officers, and welders devoting extra time to serve their community and provide for their family. It will also help manufacturers recruit new employees to fill the new factories built because of President Trump’s pro-growth tax cuts and strong trade deals.”

The tax cut of $1,400, coupled with a nearly $11,000 rise in take-home pay, will help blue-collar families recover from the 21 percent spike in prices under the Biden Administration. Along with no tax on tips and tax relief for Social Security, no tax on overtime fulfills President Trump’s commitment to put hardworking Americans first. At the same time, pro-growth tax policies in The One, Big, Beautiful Bill and fairer trade will spur more domestic production and manufacturing. No tax on overtime will be a powerful incentive for Americans to find work at a growing American manufacturer. 

At a recent field hearing the Ways and Means Committee held in Las Vegas, working Americans shared the benefit of no tax on overtime for themselves and their fellow employees. Witnesses testified to how the tax relief will put more money back into the pockets of blue-collar workers while spurring individuals to pursue a career in manufacturing. 

Nevada Manufacturer: No Tax on Overtime Encourages People to Join Manufacturing Sector

After the 2017 Trump tax cuts, workers experienced a nearly five percent growth in real wages, which grew faster for poorer workers than those in the top 10 percent. The One, Big, Beautiful Bill makes permanent the pro-growth tax cuts that raised wages while adding new pro-worker tax cuts, like no tax on overtime. 

Rep. Adrian Smith (NE-03): “Talk about employment, employee retention, recruitment, wages. Wages grew under what we did in 2017 faster than what executive compensation did. The bill then and the bill now I believe is great for workers and great for the economy. But if you could, elaborate on worker impact.”

Austin Robinson, Nevada manufacturer: “Looking back to what happened in 2017, 2018 there was probably one of the largest growth of wages in the middle class in probably recent years. During that time, it generated a lot of people changing jobs, looking for more wages or benefits to improve their position financially. Currently with us, with the no tax on overtime, it’s going to encourage more people to move into the manufacturing sector for better pay and better wages, but then also the overtime.” 

Nevada Foreman: No Tax on Overtime Rewards Working-Class Americans

The One, Big, Beautiful Bill recognizes the contributions of working class Americans by guaranteeing they keep more of their paycheck. No tax on overtime is targeted towards Americans who work hard to earn a living. A foreman for a Nevada neon sign manufacturer noted during the Ways and Means hearing in Las Vegas that no tax on overtime is a reward for the hard work of millions of Americans.

Eric Byington, Nevada paint foreman: “I wake up at 4 AM to come to this job that I love for this beautiful company. These are the things that make it worthwhile. This is actually a change for the working-class Americans. It’s the incentive. That’s what this country has been about since day one. The harder you work, the more you’re rewarded, and that’s what this bill does. You work overtime. You’re working hard; you’re staying late. Now you’re rewarded. You’re working weekends. You’re rewarded.”

FACT SHEET: The One, Big, Beautiful Bill Puts American Workers First