WASHINGTON — Treasury Secretary Scott Bessent said Wednesday that President Trump’s no-tax-on-overtime policy can offset the loss of illegal immigrant labor — after 25 million Americans claimed larger tax refunds for working more hours.
“There was this narrative that I think over 2 million illegal aliens have either voluntarily deported or been deported, and that there would be a worker shortage,” Bessent told The Post during a Tax Day White House press briefing.
“Well, what better way to fill that gap than with overtime for hardworking Americans and for them to keep more of it?”
Bessent said 45% of taxpayers boosted their refunds through one of Trump’s four signature reforms, which also included no tax on tips, a de facto end to taxes on Social Security benefits and deductions for interest on loans to buy domestic cars.
“I will tell you that the biggest one of those that Americans have taken is no tax on overtime,” Bessent said.
“It’s the American way: If you want to work longer hours, you get to keep more of your money.”
The Treasury secretary urged OT-eligible workers to contact their work human resource officers to change their tax withholding status and reap the benefit immediately rather than in a lump sum during tax season.
The Fair Labor Standards Act entitles non-exempt employees who work more than 40 hours in a week to enhanced time-and-a-half pay for additional hours.
Some salaried workers are eligible, but companies can deny overtime to workers, including those who earn more than specified federal and state thresholds.
“As [Small Business Administrator] Kelly [Loeffler] and I go out and talk to employers and workers around the country, they all want more overtime,” Bessent said.
‘Record refunds’
Bessent provided data on tax filing to argue that new deductions mean it has been “a great tax season for the American people.”
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He highlighted the four best-known reforms that Trump campaigned on ahead of the 2024 election, all of which became law last year as part of the One Big Beautiful Bill Act.
“As much as people do not like to pay their taxes, and we saw a survey today, 70% of Americans still believe that they are overtaxed, this is a great day for the American people,” he said.
“Thanks to promises made, promises kept … the president has delivered record refunds to the American people.”
Bessent spoke as high gasoline prices due to the Iran war are heightening economic concerns heading into the November midterm elections.
Still-elevated interest rates and an annual inflation rate that spiked to 3.3% in March also are contributing to cost pressures on the public.
The tax rebate data as of April 12 show, according to Bessent:
- More than 45% of filers benefitted from one of the four major tax reforms
- Those 53 million filers averaged $800 in additional refunds
- 25 million claimed no tax on overtime, with an average deduction of $3,100
- 30 million seniors benefited from enhanced Social Security deductions, averaging $7,500
- 6 million claimed no tax on tips, with a $7,100 average deduction
- More than 1 million deducted domestic car-loan interest for an average deduction of $1,800
- 34 million families claimed the increased Child Tax Credit
- 105 million filers claimed the standard deduction, the doubling of which was made permanent
