These Are The Tax Breaks Congress Is Mulling | Global News Avenue

If you work overtime, recently paid tips or buy a car, Congress is considering tax cuts, which is part of a budget bill currently being negotiated.

The 2025 federal budget process cleared a major milestone Tuesday when the House passed a resolution outlining the agenda Trillions of dollars worth of tax and budget cuts.

The details of the budget have not been eliminated. However, they may include extensions to 2017 Tax cuts and work methods and potential further tax cuts, such as eliminating overtime pay, tips, interest on car loans, and other tax cuts that President Donald Trump promised during the presidential campaign.

Here are the breaks currently being considered and how much each person will increase the federal deficit in 10 years, according to a memo issued by the House Methods and Committee last month.

Consider that the most profound personal tax relief is the elimination of income tax on overtime pay. Under U.S. labor laws, employers must pay 1.5 times their normal wages at any time of working 40 hours a week. However, the rules not applicable In many other cases, for teachers, self-employed people, “white-collar workers” as well as people.

Rules set by former President Joe Biden’s administration would raise the salary threshold for overtime eligibility to make millions more eligible, but last year the federal court knocked it out.

Analysis by Yale University’s Budget Laboratory shows that while 60% of workers are eligible for overtime pay, about 8% per hour, workers with annually paid meals collect it regularly.