No overtime taxes.

[Captain Caveman]

This is why I voted for Donald Trump:

Years ago, I thought to myself that taxing overtime pay at a higher rate was unfair to average workers. I had a wild thought: what if overtime pay was tax free? I mentioned this to one of my coworkers and he laughed. “Yeah, good luck with that”. Well, Donald Trump is floating that idea, and I think it’s a long time coming.

It must have been about twenty years ago, but I recall being told by the company I worked for that mandatory overtime was the new rule. All the salaried workers got the weekend off but regular rank and filers like me had to work Saturdays and even Sundays. One day I told my boss that I did not want to work on Saturday. He said, “No exceptions”. I said I was not working. About an hour later I got visit form higher-up who wanted to know what the problem was, in an Indian accent of course.

I told him I had other plans, and he said we work mandatory overtime here and if you don’t like it, you know where the door is. I worked Saturday like I worked every Saturday. I retired after 30 years there.

Overtime pay should not be taxed because it is essentially a punishment for working harder and longer especially if it is mandatory. I would like to see income taxes on overtime pay eliminated for workers today even though I will not benefit from it. Companies pay a higher rate for overtime pay and the government should not be entitled to steal that money through extra taxes that push a worker into a higher tax bracket. Does anyone recall any Washington swamp politician calling for no overtime taxes on average workers?

Donald Trump is doing that and he is known for saying what he means and doing what he says. Washington swampers are now being exposed for the kleptocrats they are, and they are not happy.

Put everyone on a 1 hour contract, everything above that is overtime and tax free.

Has Trump thought this through

Nope.

 

[Raynine]

And what does ANY of that have to do with compulsory OT and your assertion that it borders on slavery? Please keep to the topic.

I thought I posted this earlier:
A chain is only as strong as its weakest link. Those who toil in industry labor cannot be taken for granted. This has happened in history many times. The Great Society destroyed the American work ethic and those who work standard jobs are saddled with taxation to carry the dead weight.

https://www.thephilroom.com/blog/2024/05/06/toynbees-theory-of-civilization/

A Study of History - Wikipedia

en.wikipedia.org

 

[Concerned American]

I thought I posted this earlier:
A chain is only as strong as its weakest link. Those who toil in industry labor cannot be taken for granted. This has happened in history many times. The Great Society destroyed the American work ethic and those who work standard jobs are saddled with taxation to carry the dead weight.

https://www.thephilroom.com/blog/2024/05/06/toynbees-theory-of-civilization/

A Study of History - Wikipedia

en.wikipedia.org

Taxes are a reality that isn't going anywhere. You might as well draw a circle on the wall and bang your head against it. The best you can hope for is what we are seeing this admin do---identify waste in gov't spending and eliminate it. It will never be enough.

 

[Raynine]

Taxes are a reality that isn't going anywhere. You might as well draw a circle on the wall and bang your head against it. The best you can hope for is what we are seeing this admin do---identify waste in gov't spending and eliminate it. It will never be enough.

I'd settle for a seven-year moratorium on overtime taxes to boost the job market. It could be a Trump executive initiative like Biden's student loan forgiveness.

 

[Concerned American]

I'd settle for a seven-year moratorium on overtime taxes to boost the job market. It could be a Trump executive initiative like Biden's student loan forgiveness.

OT wages are no different from any other wage. No matter how much you whine about it, it is not going to change. LOL, when was the last time you worked for wages anyway?

 

[Raynine]

OT wages are no different from any other wage. No matter how much you whine about it, it is not going to change. LOL, when was the last time you worked for wages anyway?

I was in the Steelworker's Union for 20 years and then worked for a major friction management industry for another 30. I was a programmer for just about anything that could grind metal to tolerances as tight as fifty micro inches. I get a pension from the union and one from the company. I also get Social Security. Those pensions disappeared in the 90's when globalization hit. I got grandfathered into mine. Don't be too sure about that change. Trump usually means what he says and says what he means.

 

[WorldWatcher]

I'd settle for a seven-year moratorium on overtime taxes to boost the job market. It could be a Trump executive initiative like Biden's student loan forgiveness.

There is no such thing as an "overtime tax".

There is an income tax, but there is no difference as to whether incomie comes from "regular time" or "overtime".

WW

 

[Raynine]

There is no such thing as an "overtime tax".

There is an income tax, but there is no difference as to whether incomie comes from "regular time" or "overtime".

WW

I want no taxes on overtime pay. You know, like not having to pay back student loans. That is what I meant.

 

[WorldWatcher]

I want no taxes on overtime pay. You know, like not having to pay back student loans. That is what I meant.

Why do you want to lower peoples Social Security benefits (not now, but in the future).

WW

 

[Raynine]

Why do you want to lower peoples Social Security benefits (not now, but in the future).

WW

Ok, let's change that to no income tax after 40 hours. Total income would count of course when computing SS.

 

[Concerned American]

I want no taxes on overtime pay. You know, like not having to pay back student loans. That is what I meant.

I misjudged you Ray. You sound like just another commie democrat. Not so much on the OT question--no one likes taxes but relief from legal loan obligations is communist BS. If you don't want to pay loans back, don't take them. It is a matter of personal integrity. If you make a promise to repay a loan and renege, you have NO INTEGRITY.

 

[Concerned American]

Ok, let's change that to no income tax after 40 hours. Total income would count of course when computing SS.

Screw that, if you don't pay taxes on income, you certainly don't deserve any benefit that is supported by those taxes.

 

[WorldWatcher]

Ok, let's change that to no income tax after 40 hours. Total income would count of course when computing SS.

So wait a minute. Before you didn’t want the extra income for overtime taxed.

Now you want all income over 40 hours not taxed?

Damn.

WW

 

[justoffal]

I'm just disagreeing with the claim that OT is taxed at a higher rate.

People get that impression for a couple of reasons. Some payroll systems forecast the annual income based on the weekly total and multiply it by 52. If you have a 40-hour job and work an 80-hour week the taxes are distorted by that system. If that's the only time during the year you work that 80 hour week the extra money deducted will be in the refund.

 

[WorldWatcher]

People get that impression for a couple of reasons. Some payroll systems forecast the annual income based on the weekly total and multiply it by 52. If you have a 40-hour job and work an 80-hour week the taxes are distorted by that system. If that's the only time during the year you work that 80 hour week the extra money deducted will be in the refund.

This is not quite correct.

IRS Publicatgion 15-T provides the instructions for calculation of Federal withholding.

While it is true that the pay period compensation is forcast to an annual amount (called the Annual Adjusted Wage Amount or AAWA), that figure is based on the pay cycle not the week. Pay cycles are typically Monthly, Semi Weekly, Bimonthly, and Weekly (although it can be a Daily cycle that is pretty rare). Secondly, that Annual Adjust Wage Amount is only used for that pay cycle for when wages/salaries are earned. The AAWA is cycle dependent and is recalculated for each payroll period.

The system's do this dynamically just to prevent the kind of "distortion" you suggest in your post. It implies if that 80 work week occured in the first week in January, the that tax bracket (rate) determination would apply for the full year causing what you call the "distortion". That isn't the case, the AAWA projection applies only to that pay cycle.

WW

Loading…

www.irs.gov

 

[initforme]

Also it's a good ti.e to mandate overtime pay raises.

 

[hadit]

I now want to be paid in tips only because it's unfair to pay taxes on non-tips.

Sure, we'll let customers decide how much your work is worth.

 

[hadit]

Do away with income tax in its entirety. It is discriminatory to say one type of income should not be taxed but another should be taxed. There is no difference. It is all income.

This is true, and exposes the lie we hear from liberal billionaires who complain that they don't pay enough income taxes. They take the bulk of their income in capital gains so they pay a much lower rate than they would on regular income.

Also, there's nothing stopping them from writing a donation check to the treasury if they feel bad about it. Heck, they could even fire their armies of tax attorney's whose sole purpose is keeping their tax bill as small as possible.

 

[initforme]

What is the downside to raising overtime wages?

 

[WorldWatcher]

What is the downside to raising overtime wages?

Increase costs to the employer in terms of the overtime wage, pension contributions (if they have a pension), workers compensation premiums, possibly 401K matching if the worker routes overtime to their retirement plan, Increased employer side FICA taxes.

WW