House committee hears testimony on bill to make overtime pay deductible for Pennsylvania taxpayers

House Bill 1357, which would let Pennsylvania workers deduct state income taxes paid on overtime wages, drew testimony and questions at a Feb. 5 public hearing of the House Finance Committee.

The bill’s prime sponsor, Representative Morgan Cephas, said the measure would “put more money in the pockets of working families across Pennsylvania” by allowing workers to deduct taxes paid on overtime when they file their state return. “Close to 25% of Pennsylvanians are relying on overtime to support their quality of life,” Cephas said, and the deduction, she testified, would “promote overall economic mobility for low income and middle income workers.”

Supporters told the committee the change could help employers retain staff and encourage workers to accept additional hours. Regina Harrison, president and CEO of the African American Chamber of Commerce of Pennsylvania, New Jersey, and Delaware, testified that “for many hourly employees, overtime is not a luxury. It's essential.”…