Bill · H.R. 405· House(119-HR-405)
Keep Every Extra Penny Act of 2025
- Introduced
- 1/15/2025
- Last activity
- 1/15/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Russ Fulcher
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "Keep Every Extra Penny Act of 2025," proposes changes to the Internal Revenue Code of 1986. It aims to exclude overtime compensation from an individual's gross income for income tax purposes. Specifically, it targets overtime pay that is required under section 7 of the Fair Labor Standards Act of 1938. The new provision would be designated as section 139J. These changes would apply to amounts received after the Act is enacted.
Yes· 3 of 6
Would middle-income households be better off under this?+5
Middle-class workers who earn overtime will benefit from a reduction in their federal income tax liability.
Does this cut taxes for middle-income families?+5
The bill excludes overtime pay from gross income, which reduces the tax burden for middle-income workers who earn overtime.
Would households on low incomes be better off under this?+4
Lower-income households that rely on overtime earnings will benefit from higher take-home pay due to the tax exclusion.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Relief on Extra Earnings: By excluding overtime compensation from gross income, workers would not have to pay federal income tax on those specific earnings (Section 2(a)).
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Middle Class Households+5Good For Low Income Households+4Good For Union Workers+4Good For Young Adults+3
- Economy And Finance
- Reduces Middle Class Taxes+5Increases Minimum Wage+1
- 1/15/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Michael RulliRepublican · Ohio