the Voice of
The Communist League of Revolutionary Workers–Internationalist
“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx
the Voice of
The Communist League of Revolutionary Workers–Internationalist
“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx
April 20, 2026
The federal income tax cut for overtime pay is a lot smaller than advertised. “Eligible” workers can only deduct the premium part of overtime pay, up to $12,500 for single filers or $25,000 for joint filers. That means only the extra “half” in time-and-a-half pay qualifies for the tax break, not our full overtime earnings.
Moreover, this is only a federal income tax deduction, not a full exemption. So, we still have to pay the full payroll taxes for Social Security and Medicare, as well as state and local taxes.