Trump Says He Will End All Taxes on Overtime if Elected 

Republican presidential nominee former President Donald Trump motions while attending the 9/11 Memorial ceremony on the 23rd anniversary of the Sept. 11, 2001 terror attacks, Wednesday, Sept. 11, 2024, in New York. (AP)
Republican presidential nominee former President Donald Trump motions while attending the 9/11 Memorial ceremony on the 23rd anniversary of the Sept. 11, 2001 terror attacks, Wednesday, Sept. 11, 2024, in New York. (AP)
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Trump Says He Will End All Taxes on Overtime if Elected 

Republican presidential nominee former President Donald Trump motions while attending the 9/11 Memorial ceremony on the 23rd anniversary of the Sept. 11, 2001 terror attacks, Wednesday, Sept. 11, 2024, in New York. (AP)
Republican presidential nominee former President Donald Trump motions while attending the 9/11 Memorial ceremony on the 23rd anniversary of the Sept. 11, 2001 terror attacks, Wednesday, Sept. 11, 2024, in New York. (AP)

Republican US presidential candidate Donald Trump said on Thursday that he will end all taxes on overtime pay as part of a wider tax cut package, if he is elected in the Nov. 5 election.

"As part of our additional tax cuts, we will end all taxes on overtime," Trump said in remarks at a rally in Tucson, Arizona. "Your overtime hours will be tax-free."

Trump, who faces Democratic Vice President Kamala Harris in what polls show to be a tight race, has previously said he would seek legislation to end the taxation of tips to aid service workers. Harris has made a similar pledge.

"He is desperate and scrambling and saying whatever it takes to try to trick people into voting for him," a Harris campaign spokesperson said in response to Trump's proposal on Thursday.

At a campaign event this month with union workers, Harris accused Trump of "blocking" overtime from millions of workers during his 2017-2021 presidency.

In 2019, the Trump administration issued a rule increasing the eligibility of overtime pay to 1.3 million additional US workers, replacing a more generous proposal that had been introduced by President Barack Obama, Trump's Democratic predecessor.

The Trump administration raised the salary level for exemption from overtime pay to $35,568 a year, up from the long-standing $23,660 threshold. Workers’ rights groups criticized the move, saying it covered far fewer workers than the scheme introduced under Obama.

Under Obama, the Labor Department proposed raising the threshold to more than $47,000, which would have made nearly 5 million more workers eligible for overtime. That rule was later struck down in court.

Overtime pay at these income levels overwhelmingly benefits blue-collar workers, such as fast-food workers, nurses, store assistants and other low-income employees.

"The people who work overtime are among the hardest working citizens in our country and for too long no one in Washington has been looking out for them," Trump said on Thursday.

Under Labor Department rules, eligible workers must be paid at least time-and-a-half for hours worked above 40 hours in a single work week.

As of last month, American factory workers in non-supervisory roles put in an average of 3.7 hours of overtime a week, data from the Bureau of Labor Statistics shows.

Not taxing overtime would result in less government revenue, at a time when Trump's plan to permanently extend the tax cuts he passed as president would expand the US deficit by $3.5 trillion through 2033, according to the non-partisan Congressional Budget Office. The US budget deficit in the first 11 months of this fiscal year is $1.9 trillion.

It's unclear how much revenue the government receives from taxes on overtime pay.

Trump's proposal would be a first for the federal government. Alabama this year became the first state to exclude overtime wages for hourly workers from state taxes as a temporary measure that won legislative support in part to help employers fill jobs in a tight labor market. The exemption is for 18 months only.



Global Firms to Asharq Al-Awsat: Saudi Arabia Speeds Up AI Progress

Panel discussion at the Global AI Summit in Riyadh, Saudi Arabia (Asharq Al-Awsat)
Panel discussion at the Global AI Summit in Riyadh, Saudi Arabia (Asharq Al-Awsat)
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Global Firms to Asharq Al-Awsat: Saudi Arabia Speeds Up AI Progress

Panel discussion at the Global AI Summit in Riyadh, Saudi Arabia (Asharq Al-Awsat)
Panel discussion at the Global AI Summit in Riyadh, Saudi Arabia (Asharq Al-Awsat)

Global tech companies at the third Global AI Summit in Riyadh emphasized Saudi Arabia’s rapid progress in artificial intelligence, noting the Kingdom’s growing leadership in the field.

They highlighted the summit as a key opportunity for businesses to expand their local and international partnerships.

In talks with Asharq Al-Awsat, they described the summit as a major event that shapes the future of AI, helping to address challenges and fully leverage the technology.

The companies also pointed out that AI, closely tied to cloud computing, provides dynamic and complex solutions. They stressed that managing and protecting AI requires top-notch cybersecurity standards.

Abdulrahman bin Mohammed Al-Thehaiban, managing director of Google Cloud for the Middle East, Türkiye and Africa region (META), stressed the importance of AI, which is closely linked to cloud computing and offers innovative, adaptable solutions.

Speaking to Asharq Al-Awsat, Al-Thehaiban highlighted Google Cloud’s role in the event. He emphasized the company’s goal to connect with clients locally and globally, showcasing its AI technology solutions.

Al-Thehaiban said Google Cloud meets all AI needs for businesses and governments, including those related to climate change. He mentioned partnerships with the Saudi Data and Artificial Intelligence Authority (SDAIA) that have trained women in AI.

He added that AI now significantly impacts not just businesses and governments but also individuals, with increasing reliance on the technology.

Al-Thehaiban also noted that while data collection was a major focus six years ago, it is now crucial for implementing AI solutions.

Ahmed Al-Reshoodi, COO of Saudi Cloud Computing Co., told Asharq Al-Awsat that AI needs advanced cloud services and strong data management and cybersecurity.

At the third Global AI Summit in Riyadh, he noted his company’s focus on localizing the latest technologies in Saudi data centers, operated by local talent, supporting Vision 2030 goals.

Al-Reshoodi said the company works with various organizations across the Kingdom, including government, private, financial, and small businesses.

He highlighted that AI is increasingly used in smart cities, financial tech, and healthcare, and emphasized his company’s commitment to meeting Saudi Arabia’s growing cloud service needs.