Millions of hourly workers are currently unable to benefit from the new overtime tax deduction, according to the Transport Workers Union of America. The union is calling on Congressional leaders to draft legislation that would make this tax benefit accessible to all hourly workers, potentially saving them up to $6,000 annually.
“Providing tax relief to blue-collar workers is a great idea,” said TWU International President John Samuelsen. “They deserve it much more than greedy corporate giants and hedge-fund vultures who never get their hands dirty or have to lift anything heavier than a cocktail. All blue-collar workers, however, must be deemed eligible.”
The One Big Beautiful Bill Act (OBBA), passed by Congress on July 3, revised the tax code to allow most hourly workers to deduct up to $25,000 in overtime pay from their yearly income for tax purposes. However, an outdated definition of overtime dating back to a 1938 law has resulted in approximately 3 million workers being unintentionally excluded from this benefit. This group includes employees in sectors such as airlines, railroads, school bus companies, and motor coach carriers.
On July 21, TWU sent a letter drafted with the support of twenty unions and affiliates to House Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Leader John Thune, and Senate Minority Leader Chuck Schumer.
“This is just the beginning of our efforts,” Samuelsen stated. “We will be leading the charge on this until all our members get what they deserve.”
