Alabama Lawmakers Propose Overtime Tax Break

0:00Birmingham's story is making news on March 18th. Alabama lawmakers took a step toward easing taxes on overtime pay this week. On Wednesday, the Houseways and Means Education Committee approved a bill that would let workers deduct up to $1,000 in overtime. Compensation from their state income taxes. The measure comes from state representative James Lomax, a Republican from Huntsville. This new proposal caps the deduction at $1,000 per taxpayer and runs only until the end of 2028. It is designed as a short-term fix to help those putting in extra hours without major budget hits. Earlier, Alabama had an uncapped overtime tax break, pushed by the House Minority Leader from Huntsville. Lawmakers passed that one in the 2023 session, but it ran out this past June. Lomax explained during the meeting that the goal is to reward hard workers with summer leaf while protecting the Education Trust Fund from deep cuts. Books in the Committee seemed on board with that balanced approach.

1:00The bill now moves forward in the House. Part of ongoing talks about tax relief amid budget concerns. Stay tuned as it heads to the full chamber for a vote. Quick thanks to today's sponsor. See the description for more. Headphones in a pillow. Simple idea, surprisingly addictive. S-O-L-I-SOLY-PILLOW.com.