Alabama Bill to Tax-Free Overtime Pay for Workers

0:00From the Daily News Now Network, this is Corey with Birmingham News Today. Alabama State Senator Arthur Orr says a new bill to cut state income taxes on overtime pay is on track to pass both the House and Senate. The measure, inspired by President Donald Trump's plan, will let hourly workers keep up to $1,000 of their overtime earnings tax-free. Orr shared these details during a recent chat on mobile radio's FM Talk 106.5. House bill, 527, targets folks working more than 40 hours a week, aiming to ease their tax burden. Lawmakers see this as a way to reward hard work and motivate employees without the state grabbing a big slice of overtime pay. Orr stressed it will provide real relief for those putting in extra hours. To keep costs in check, the bill includes a strict $1,000 cap per worker. Orr pointed to a past tax break that ballooned from an estimated $40 to $50 million to over $400 million in loss revenue.

1:00Over 18 months. This approach strikes a balance, putting money back in workers' pockets while protecting the state's budget from a massive hit. Officials expected to move forward soon. A message from our sponsor supports today's story. Do not just listen to podcasts, get lost in them comfortably. S-O-L-I-S-O-L-Pillow.com