If the members of Congress want to give a real tax break to 70 million working citizens, then the tax on working overtime must be eliminated. Ending the tax on overtime pay would be a better plan than periodic economic stimulus packages. In this time of recession, I can think of no better way to allow working families to survive these tough economic times than ending the penalty for working overtime.
Based on calculations using Bureau of Labor Standards data, the average American worker works 3.33 hours of overtime weekly, makes around $91.80 in weekly overtime wages, and pays $11.10 in federal taxes.Those taxes bring in an estimated $40.4 billion annually. However, if those workers kept that extra money, that would create an estimated $282.8 billion in spending power for this economy.
To put it in perspective, the average American worker would bring home an extra $577.20 annually, compared to the average stimulus package award of $600.
It is time now to start a movement to bring real tax relief to the working men and women of this nation. During my tenure in the Mississippi House of Representatives, I pushed for years to make this the law in Mississippi, initially inspired by Mississippi workers. The effects of Hurricane Katrina made it more clear to me that this tax needed to be abolished. I even had a resolution passed by the National Black Caucus of State Legislators in 2005 in support of this cause.
So I am making a personal appeal for you reading this blog to join this cause, as we set forth to make America more productive and prosperous in the months and years to come. If you are interested in helping make this happen, feel free to contact me using the info on my profile.