Overtime Tax Fight: Daniels' Bill vs. GOP Plan

0:00It's April 4th. Welcome to Birmingham News Today, powered by AI. I'm Cory with the story. House Minority Leader Anthony Daniels, a Democrat from Huntsville, just dropped a bold bill to wipe out all-state taxes on overtime pay. This comes right after years of him pushing hard for it, especially since a temporary tax cut from 2023 expired last June. Daniels wants a full permanent exemption on those extra hours workers grind. Republicans countered with their own plan, House Bill 527, from Rep James Lomax, also from Huntsville. It offers a deduction of up to $1,000 on overtime income for tax years starting in 2026 through 2028. They tacked on a two-month grocery tax holiday too, calling its sustainable relief for folks who need it. Democrats aren't thrilled. Seeing it as Republicans borrowing their long-fought idea without going all in. Reps like Philip Ensler and Barbara Drummond said it's better than nothing, but they wish the House was debating Daniels a stronger version instead.

1:00Daniels himself voted for the GOP bill, but stressed Alabama needs real help amid rising fuel costs and that gas tax. Tensions boiled over in debate, with Rep Patrice McClammy calling off the grocery amendment as poaching a Democratic cause, her task force had worked. On. Still, the bill sailed through the House nearly unanimous, 100-0 with five abstentions, and cleared a Senate committee Wednesday. Daniels House Bill 665 now sits in the Ways and Means Education Committee, but with just three days left in session and no buy-in from THE. Republican majority, it's a long shot. This overtime tax fight shows the push pool in Montgomery where workers wallets hang in the balance.