During his time in office, President Trump implemented several policies that had positive impacts on workers’ rights:
- Overtime Regulations: The Department of Labor revised overtime regulations, raising the salary threshold for overtime eligibility. This change meant that more employees qualified for overtime pay, benefiting millions of workers, especially those in lower-wage positions.
- Tax Cuts and Jobs Act: The Tax Cuts and Jobs Act of 2017 included provisions that aimed to boost economic growth and job creation. The reduction in corporate tax rates was intended to encourage businesses to invest in their workforce and create more job opportunities.
- Apprenticeship Programs: The Trump administration expanded apprenticeship programs to provide more opportunities for workers to gain skills and training in various industries. This initiative aimed to bridge the skills gap and improve job prospects for many Americans.
Trump in his second term, would also like to end the taxing on Tip’s, Overtime Pay and Social Security.
Based on recent reports, there are proposals circulating, particularly within the House Republican budget resolution, that aim to eliminate certain taxes. Here’s a breakdown of the key points:
- Tips:
- The proposal seeks to eliminate income taxes on tips. This would primarily benefit workers in the service industry, such as restaurant staff, delivery drivers, and others who rely on gratuities.
- It is important to understand that there is a distinction between income tax and payroll taxes. So, it is possible that payroll taxes on tips could remain.
- Overtime Pay:
- There’s also a proposal to exempt overtime pay from income tax. This would allow workers to keep a larger portion of their earnings when they work extra hours.
- Social Security Benefits:
- Proposals exist to eliminate income taxes on Social Security benefits, aiming to increase retirees’ disposable income.
- Key Considerations:
- These proposals face significant budgetary hurdles. Offsetting the costs of these tax cuts is a major challenge.
- The proposals are currently moving through the legislative process, and their future depends on negotiations, particularly in the Senate.
- It is also worth noting that there are different ways of how these proposed tax changes could be implemented, which effects the overall cost, and how the changes would effect taxpayers.
In summary, there are active proposals to eliminate taxes on tips, overtime pay, and Social Security benefits, but their implementation is uncertain and subject to ongoing political and budgetary considerations.