Post by Lance Lillidge on May 4, 2008 16:31:12 GMT -5
Senator LILLIDGE, for himself, offers
A BILL
To amend the Internal Revenue Code of 1986 to exclude overtime pay from gross income.
SECTION 1. SHORT TITLE
This Act may be cited as the Overtime Tax Relief Act.
SECTION 2. EXCLUSION OF OVERTIME PAY FROM GROSS INCOME
(a) In General- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 139A the following new section:
`SEC. 139B. OVERTIME PAY.
`(a) In General- In the case of an individual, gross income shall not include any qualified overtime payment.
`(b) Phaseout- Subsection (a) shall only apply to the portion of a qualified overtime payment up to the 70th percentile income if the qualified overtime payment was included in gross income.
`© Definitions- For purposes of this section--
`(1) QUALIFIED OVERTIME PAYMENT- The term `qualified overtime payment' means overtime compensation paid pursuant to section 7(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(a)(1)) for employment in excess of the hours specified in such section.
`(2) 70TH PERCENTILE INCOME - The term '70th percentile income' means the national 70th percentile of income as reported by the Federal Register.
(b) Clerical Amendment- The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139A the following new item:
`Sec. 139B. Overtime pay.'.
© Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
PES
If made law, this Act would amend the Internal Revenue Code of 1986 to exclude overtime pay from gross income, for incomes up to the 70th percentile of income.
A BILL
To amend the Internal Revenue Code of 1986 to exclude overtime pay from gross income.
SECTION 1. SHORT TITLE
This Act may be cited as the Overtime Tax Relief Act.
SECTION 2. EXCLUSION OF OVERTIME PAY FROM GROSS INCOME
(a) In General- Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to items specifically excluded from gross income) is amended by inserting after section 139A the following new section:
`SEC. 139B. OVERTIME PAY.
`(a) In General- In the case of an individual, gross income shall not include any qualified overtime payment.
`(b) Phaseout- Subsection (a) shall only apply to the portion of a qualified overtime payment up to the 70th percentile income if the qualified overtime payment was included in gross income.
`© Definitions- For purposes of this section--
`(1) QUALIFIED OVERTIME PAYMENT- The term `qualified overtime payment' means overtime compensation paid pursuant to section 7(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 207(a)(1)) for employment in excess of the hours specified in such section.
`(2) 70TH PERCENTILE INCOME - The term '70th percentile income' means the national 70th percentile of income as reported by the Federal Register.
(b) Clerical Amendment- The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139A the following new item:
`Sec. 139B. Overtime pay.'.
© Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
PES
If made law, this Act would amend the Internal Revenue Code of 1986 to exclude overtime pay from gross income, for incomes up to the 70th percentile of income.
