OohPooPahDoo
Gold Member
Uhhh, newsflash. Witholding without exemptions takes about 20-25% of your paycheck. Just do the math. Most time's you keep only 80% unless you make a lot... then it gradually goes up. Work overtime and see it REALLY jump.Shit, please.
You're forgetting a major point. Most of those Wallyworld employees get over 20% withheld unless they take more than a standard deduction. They never see that cash as it's whisked away to earn interest for the federal government and be spent. They get some to all or MORE back when they pay taxes.
If you did a flat tax and did witholding with zero deductions possible it's very simple. Would see your gross income, minus 10% (if that's the tax rate) and the rest is yours. No second Christmas. No complicated tax forms. It's done. It's relatively painless outside of getting payola at the end of the year.
The dehumanization is reserved for people gaming the system, getting more back than they put in.
10% on your gross income would be a tax increase for most Americans of average or below average income.
The amount withheld depends on how big your paycheck is and it is exactly equal to the amount you would pay in federal income tax if you made money at that rate all year.
http://www.irs.gov/pub/irs-pdf/n1036.pdf
If they kept ONLY a flat 10% and didn't give it back regardless of what I make, I come out +10% a paycheck better making it worth my while to work more.
See, I knew some guys who swore by never working more than 20 hours of overtime because no matter what you did after that, you kept so little of your own money.
Of course, once again, "who're you gonna believe? Me or your damn lying eyes?" People keep asking me that and then wonder why I stare or laugh at them with incredulity.
Those guys you knew were fuckin' retards then. You get a 50% increase on your hourly wage with OT the tax brackets don't increase fast enough for you not to make a higher wage in overtime.
Example:
Make $10 in the 0% bracket - bring home $10.00 before FICA.
Make $15 in the 10% bracket - bring home $13.50 before FICA.
Make $10 in the 10% bracket - bring home $9.00 before FICA.
Make $15 in the 15% bracket - bring home $12.75 before FICA.
Make $10 in the 15% bracket - bring home $8.50 before FICA.
Make $15 in the 25% bracket - bring home $11.25 before FICA.
In each case you bring home more money per hour working overtime in the higher bracket than regular time in the lower - FICA rates are regressive and hence would do nothing to change that fact.
Not to mention there's no way of telling how well the overtime/regular pay divide lines up with the tax bracket cutoff until the end of the year, after you've already done all your work.
Looks like you and your guys are confused about what tax returns are for. If you make $10,000 in one pay period your earning will be withheld in that pay period as if you make $10,000 every pay period for the whole year. If it turns out most pay periods you make $5,000 and that was just an exceptional week, the difference between withholding and the tax rate you actually pay gets refunded to you at the end of the year. Or do your guys not file tax returns?
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