During a recent Ways & Means Committee hearing with IRS CEO Frank J. Bisignano, U.S. Representative Mike Kelly (R-PA), who chairs the Ways & Means Subcommittee on Tax, promoted the Working Families Tax Cuts “No Tax on Overtime” provision. Kelly stated that this measure is resulting in financial savings for workers and greater productivity.
According to estimates from the Ways & Means Committee, employees such as welders, linemen, and factory workers who earn overtime could see their taxes reduced by $1,400.
“The savings in this legislation are an incredible boost for the morale of the American people,” said Rep. Kelly. “Americans want to work overtime now because they get to keep the money. They don’t have to pay it to the government. They get to keep it with their families.”
The Working Families Tax Cuts include several provisions:
– Waitresses, barbers, bellhops, and other tipped professionals may see tax reductions of $1,300.
– Seniors receiving Social Security benefits are expected to benefit as well; 88% will not pay taxes on these benefits under the new policy. There is a $6,000 deduction for seniors aged 65 and older and a $12,000 deduction for married couples.
– The current tax filing season is seeing larger refunds due to these changes. On average, taxpayers could receive $1,000 more in their refund this year. The average refund amount has increased by 14%, reaching almost $4,000 per person.
Mike Kelly has represented Pennsylvania’s 16th district in Congress since 2011 after succeeding Kathy Dahlkemper (https://kelly.house.gov/about). Born in Pittsburgh in 1948 and currently residing in Butler at age 74, he graduated from the University of Notre Dame in 1970 with a BA degree.
