110 HR 3410 IH: Hardest Working Americans Tax Relief U.S. House of Representatives 2007-08-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3410 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.

1.

Short title

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

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:

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.