Washington DC – According to TWU Millions of hourly workers are ineligible for the new overtime tax deduction – a serious flaw Congress needs to fix.
Transport Workers Union is sending this message to Congressional leaders. Corrective legislation is needed so all hourly workers can take advantage of the benefit: up to $6,000 in savings per year.
The One Big Beautiful Bill Act (OBBA) revised the tax code, allowing most hourly workers to deduct up to $25,000 in overtime pay from their yearly income for tax purposes. Congress passed the bill on July 3. However, the revision relies on an outdated definition of overtime dating back to a law enacted in 1938. As a result, an estimated 3 million workers were unintentionally excluded. They include workers employed by airlines, railroads, school bus companies, and motor coach carriers.
“Providing tax relief to blue-collar workers is a great idea,” TWU International President John Samuelsen said. “They deserve it much more than greedy corporate giants and hedge-fund vultures who never get their hands dirty or have to lift anything heavier than a cocktail. All blue-collar workers, however, must be deemed eligible.”
Twenty unions and affiliates signed a TWU-drafted letter sent on July 21 to House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Leader John Thune, and Senate Minority Leader Chuck Schumer.
“This is just the beginning of our efforts,” Samuelsen said. “We will be leading the charge on this until all our members get what they deserve.”
