[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3410 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3410

To amend the Internal Revenue Code of 1986 to exclude overtime pay from 
                             gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 2007

Mr. Jefferson introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude overtime pay from 
                             gross income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hardest Working Americans Tax Relief 
Act of 2007''.

SEC. 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.--The amount excluded from income by subsection (a) 
shall be reduced (but not below zero) by the amount which bears the 
same ratio to adjusted gross income (determined without regard to 
subsection (a)) as--
            ``(1) the excess of--
                    ``(A) adjusted gross income (as so determined), 
                over
                    ``(B) the applicable poverty line, bears to
            ``(2) the applicable poverty line.
    ``(c) 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) Applicable poverty line.--The term `applicable 
        poverty line' means with respect to a taxable year, the poverty 
        line, as determined in accordance with criteria established by 
        the Director of the Office of Management and Budget, for the 
        calendar year with which or in which such taxable year begins, 
        taking into account the filing status of the taxpayer and 
        number of dependents for which an exemption is allowable under 
        section 151.''.
    (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.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
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