No Tax on Overtime: Will the House Budget 2025 bill make overtime pay tax-free? Key changes, medicaid cuts, and GOP's spending plan explained
House Budget 2025 proposal has introduced a major change—no tax on overtime pay, which could significantly impact American workers. The bill, backed by House Republicans, aims to provide relief to employees by making overtime earnings tax-free. Alongside this, the budget includes Medicaid cuts, spending reductions, and tax policies aligned with former President Donald Trump’s economic strategy. As Congress debates the provisions, the outcome of the House budget vote will determine if these changes take effect. Here’s everything you need to know about the budget bill 2025 and its potential impact.
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When does no tax on overtime start?
The no tax on overtime provision will take effect once the House Budget 2025 bill is passed and signed into law. Currently, the bill is under discussion in the House of Representatives, with a vote expected soon. If approved, workers who log extra hours will see their overtime pay fully exempt from federal income tax.
What are the key changes in the House Budget 2025 bill?
The House budget bill 2025 includes several major provisions:
- No taxes on overtime pay, reducing the tax burden on workers.
- Medicaid cuts, which could affect millions of low-income families.
- Trump tax cuts extended, focusing on corporate and individual tax relief.
- Spending bill reductions, aimed at lowering the federal deficit.
How will the House
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