Trump Announces New Proposal: 'No Tax On Overtime!'

A salaried employee doesn’t get to “exclude” a part of their income. They pay tax on all income.

So in effect it’s shifting the tax burden over to salaried workforce or generally anyone paying any taxes at all that doesn’t get OT, or since apparently “conservatives” are cool with expanding deficits now it really just further expands the deficit.

The “fairness” issue is more with those that may use OT to boost their incomes into the 6 figure range. It’s conceivable some folks could have half their income excluded. Keep in mind a lot of these people get huge amounts of money back from the govt now as well. Kind of a funny turn from the “makers and takers” GOP that was against even the EITC. Now the GOP is for regressive über entitlements.

Personally I think all these proposed “exclusions” are just obvious pandering to unions (tips aimed at Nevada service workers union, “OT” aimed at cop and firefighter union who take on a lot of OT). There is no rational or moral reason for that income to be looked at differently from an accountants income or from a pharmacists income or any other type of earned income.

With Project 2025 supposedly looking to do away with mandatory time and a half, it may also be a scam, or more likely something Trump put no thought into whatsoever as far as budgetary impact. Employers would no longer be obligated to full OT wages, but then they would try to sell them on the tax benefit. That’s surely the way it would play out in the private sector, but I bet police unions would still demand their “tax free” time and a half.

 

This seems definitive. What is “the plan”?

 

Numerous consumption based tax plans have been suggested over the years.

One of the most popular was the “fair tax”.

Unlikely any will ever pass as the special interests would lose their power.

 

The so called "fair tax" is anything but fair. In order for the tax to be revenue neutral the rate would have to so high as to shift a significant portion of the tax burden from upper income taxpayers under the progressive income tax to middle income taxpayers who spend a much higher percentage of their income on consumption than to the wealthiest taxpayers.
https://www.americanprogress.org/ar...e-nations-tax-system-in-favor-of-the-wealthy/

 

Some cops and firefighters in California (and other places) make over $250k per year on an $80-100k salary. It's all based on how well you know your supervisor, and what he's willing to sign off on. And it's not like they are on the streets fighting crime and fires the entire time. If you can find a nice quiet place to sleep, you can "work" more hours than a typical person can possibly stay awake in a week. Yeah, these people need a tax break. With all of the stress of gaming the system and gobbling up all of our tax dollars, the least we can do is provide them with $170k in tax-free money.