Why is it so easy to imagine Wall Street abusing this and finding loopholes to categorize their earnings as a “*tip*”?
This would be horrible
Every single penny that Americans can prevent from sending to this demonic government should be celebrated.
Agree that this would be a bad policy. However there is a dirty secret to overtime. You might be getting time and a half pay, but the whole amount will be taxed at your marginal rate which for most people is 35% or higher and therefore your take home pay for overtime work is likely similar to overall take home pay.
Edit: lol at all the people responding and claiming I don’t understand marginal rates while simultaneously proving they don’t understand marginal vs effective rates.
An example which I will admit I have been really wanting to tell. In a dual income household, the second spouses income is taxes essentially the same as overtime and is taxed at marginal rate. I have high income. My wife is a teacher. She is going to quit after this year. Financially it really makes no sense for her to work. Her income basically taxed as if I were doing overtime. Everything she does gets taxed at our marginal rate of slightly over 50%. That is 35% federal tax. 8% state tax. 7.6% FICA. it isn’t worth her pain of being a teacher when over half of her paycheck goes to taxes.
So rewarding ALL people who put in actual extra hours into work is somehow worse than rewarding the few people who work for tips?
Sorry that doesn’t make sense at all.
No tax on overtime, no tax on tips, no tax on Social Security do you people hate Trump that much that you can’t see something good for the working class and elderly. 60% of our workers work for hourly pay. The higher ups are all on salary so this would benefit the lower wage working class.
The “zero policy” drunk VP Hahakakamala just did the copy-n-paste to her website
Republicans want to change the rules on overtime. There may be little to no overtime to tax. Can’t tax overtime if there isn’t any to tax.
Hm. Maybe we have a fucking spending problem?
Look, I’m anti trump, 100% threat to democracy. But, I work at least 475 hours of OT a year. This has meaningful impact. It does and we need to be honest about it.
Obviously taxes need to be raised, but not on people making less than 250K a year.
The first $40,000 for a single and $50,000 for any 1 child family…tax free. Mission accomplished one fell swoop.
Peanuts to the treasury in the big picture, a whole new world for the working poor.
Great now can we address the spending side of the equation?
Don’t let this BS article manipulate you into thinking this isn’t something good for the lower class. It’s the majority of the lower class that are on hourly vs salary. CEOs don’t get overtime, they get either salary or equity. The rich have their loopholes, let us have ours
How about eliminating income tax entirely and enacting a 30% sales tax that exempts food, medical care, and housing? Estimates are around 17-20% would be needed to replace current income tax with no exemptions and around 30% exempting food, housing and medical care.
Of course, raising taxes on the rich could pay for that.
One candidate wants to do that. Another one doesn’t.
People respond to incentives. This is a policy that actually incentivizes hard work rather than hand outs, so you will get just that. Workers will want to work beyond 40 hours, whereas Kamala’s policies all incentivize you to not work and play your victim card.
Kamala = more victims will emerge in search of handout. Opportunity economy will separate “marginalized groups” from whites for Free down payments, student loan forgiveness, less tax for folks that don’t earn much, more for those that do.
Trump = people of all races and genders are incentivized to work as hard as they can to provide for their family.
What’s so hard to understand people?
The bigger deal mentioned (undermentioned in article) is evasion and abuse.
All salaried workers, because they answer emails at home, and work as long as project deadlines are now hourly workers working 40 hours of overtime per week. Instead of $125k/year salary, that pays say $25k in income and payroll taxes to government/us… $46k salary with $63k in overtime. $5k tax revenue. Small after tax raise.
For abuse, Instead of paying you $10/hour, with $15/hour if asked for overtime. I offer you $8 hour with $12/hour overtime. With the following boost: If you work 40 hours, we will count 10 hours of overtime for free. This is $440 instead of $400/week without overtime work. With a lower tax rate. For employers, it is cheaper actual overtime work, and if they find a way to get only 39 hours from employee, then less cost and less pay for that worker. “Pretty please take that second offer and we pinky swear to give you 40 hours” looks good to trusting people.
17 comments
Why is it so easy to imagine Wall Street abusing this and finding loopholes to categorize their earnings as a “*tip*”?
This would be horrible
Every single penny that Americans can prevent from sending to this demonic government should be celebrated.
Agree that this would be a bad policy. However there is a dirty secret to overtime. You might be getting time and a half pay, but the whole amount will be taxed at your marginal rate which for most people is 35% or higher and therefore your take home pay for overtime work is likely similar to overall take home pay.
Edit: lol at all the people responding and claiming I don’t understand marginal rates while simultaneously proving they don’t understand marginal vs effective rates.
An example which I will admit I have been really wanting to tell. In a dual income household, the second spouses income is taxes essentially the same as overtime and is taxed at marginal rate. I have high income. My wife is a teacher. She is going to quit after this year. Financially it really makes no sense for her to work. Her income basically taxed as if I were doing overtime. Everything she does gets taxed at our marginal rate of slightly over 50%. That is 35% federal tax. 8% state tax. 7.6% FICA. it isn’t worth her pain of being a teacher when over half of her paycheck goes to taxes.
So rewarding ALL people who put in actual extra hours into work is somehow worse than rewarding the few people who work for tips?
Sorry that doesn’t make sense at all.
No tax on overtime, no tax on tips, no tax on Social Security do you people hate Trump that much that you can’t see something good for the working class and elderly. 60% of our workers work for hourly pay. The higher ups are all on salary so this would benefit the lower wage working class.
The “zero policy” drunk VP Hahakakamala just did the copy-n-paste to her website
Republicans want to change the rules on overtime. There may be little to no overtime to tax. Can’t tax overtime if there isn’t any to tax.
Hm. Maybe we have a fucking spending problem?
Look, I’m anti trump, 100% threat to democracy.
But, I work at least 475 hours of OT a year.
This has meaningful impact. It does and we need to be honest about it.
Obviously taxes need to be raised, but not on people making less than 250K a year.
The first $40,000 for a single and $50,000 for any 1 child family…tax free. Mission accomplished one fell swoop.
Peanuts to the treasury in the big picture, a whole new world for the working poor.
Great now can we address the spending side of the equation?
Don’t let this BS article manipulate you into thinking this isn’t something good for the lower class. It’s the majority of the lower class that are on hourly vs salary. CEOs don’t get overtime, they get either salary or equity. The rich have their loopholes, let us have ours
How about eliminating income tax entirely and enacting a 30% sales tax that exempts food, medical care, and housing? Estimates are around 17-20% would be needed to replace current income tax with no exemptions and around 30% exempting food, housing and medical care.
Of course, raising taxes on the rich could pay for that.
One candidate wants to do that. Another one doesn’t.
People respond to incentives. This is a policy that actually incentivizes hard work rather than hand outs, so you will get just that. Workers will want to work beyond 40 hours, whereas Kamala’s policies all incentivize you to not work and play your victim card.
Kamala = more victims will emerge in search of handout. Opportunity economy will separate “marginalized groups” from whites for Free down payments, student loan forgiveness, less tax for folks that don’t earn much, more for those that do.
Trump = people of all races and genders are incentivized to work as hard as they can to provide for their family.
What’s so hard to understand people?
The bigger deal mentioned (undermentioned in article) is evasion and abuse.
All salaried workers, because they answer emails at home, and work as long as project deadlines are now hourly workers working 40 hours of overtime per week. Instead of $125k/year salary, that pays say $25k in income and payroll taxes to government/us… $46k salary with $63k in overtime. $5k tax revenue. Small after tax raise.
For abuse, Instead of paying you $10/hour, with $15/hour if asked for overtime. I offer you $8 hour with $12/hour overtime. With the following boost: If you work 40 hours, we will count 10 hours of overtime for free. This is $440 instead of $400/week without overtime work. With a lower tax rate. For employers, it is cheaper actual overtime work, and if they find a way to get only 39 hours from employee, then less cost and less pay for that worker. “Pretty please take that second offer and we pinky swear to give you 40 hours” looks good to trusting people.