No Tax on Overtime for All Workers Act
Key claim: HR4740, the No Tax on Overtime for All Workers Act, would eliminate federal income tax on overtime compensation for all workers.
Abstract
(HR4740 · 119th Congress) Latest action (2025-07-23): Referred to the House Committee on Ways and Means.
Why this matters
HR4740 continues an active policy thread of carving specific wage categories out of the federal income tax base, following related proposals on tips and other compensation types. Workers earning overtime would pay less federal income tax, while the federal fisc would forgo revenue tied to premium-hours labor — raising distributional and administrative questions (definition of qualifying overtime, interaction with FLSA, and payroll-reporting mechanics) that parallel debates in adjacent exclusion proposals.