All of the payroll services are saying .... "Oh man, are you fo' real?" as they schedule meetings with their dev teams to determine how they are going to code this change into their SAAS products. If this happens, I suspect any OT hours entered during each payperiod will be exempted from FIT and the FIT withholding for the payperiod would be adjusted accordingly. As you mentioned, the taxable wages on the employee's w-2 would exclude any OT wages paid during the tax year ... and those exempt wages would likely be disclosed elsewhere on the W-2. Now state revenue and tax departments will have to decide what they will do as regards taxing OT hours. If they continue to tax OT, that will be another headache for the payroll service dev team.
The price of work - i assume you mean taxes- occur mostly out of sight, and out of mind for most of us as our employer just withholds a percentage. Also, as it has been going on for over a hundred years now we accept it with some bitching and moaning perhaps. But the consumption tax coming out of your wallet every time you are at a cash register is a new slap in the face and it seems to me might make people put off larger purchases - cars etc. The financial effect on us may be the same but i can foresee a psychological effect of the consumption tax. Edit to note that a consumption tax would probably benefit me given the reduced necessary spending my wife and i do as retired geezers.
Up is down, left is right for my entire life Dems have been fighting to reduce taxes of the middle class while Republicans kept reducing it for the wealthy. now Trump, a Dem who infiltrated the Pubs, is trying to reduce taxes for the middle class with this proposal… and the people rejoice. There is no honor amongst thieves I support reducing taxes on the middle class, period. I would prefer a fix to the bracket instead of a gimmick, but will take it it Pubs fall in line.
You mean like being very vocal about decriminalizing illegal border crossings and then supporting more wall?
Not a fan of gimmicks and it’s selective as to who receives it, if not ripe for abuse. You could have big city cops making 10’s of thousand of tax free income relative to other fields like teachers who would have no such OT benefit. It’s likely the cops and firefighters they are pandering to here since they tend to have higher wage OT. This isn’t for warehouse or factory workers. Not a fan of “no tax on tips” either for those very same “ripe for abuse” reasons. If these things ever passed there would probably be cab drivers trying to claim like 90% of their income is either OT or tips lmao. ‘Member when some on the right were calling for flat tax and simplifying code (anyone actually believe them?). Ancient times.
OT: Can have compassion and also protect the boarder [sic]. Would prefer better technolgy and e-verify. We need certain labor and have to make hard choices. We don’t have the labor to do all the jobs necessary. Immigration policy requires hard work and compromise.
Yes I see your point. However, I think that the shortfall would likely be only transitory until we got used to the new system. E.g. if people really did make more money but chose to reduce consumption, savings should increase. One, given the stats on how little Americans save, this might not be a bad result in itself. But two, also given the stats on how little Americans save, I can’t believe that people would just let their money pile up for too long.
At first I thought the same thing but I guess now the idea is NO income tax on any OT earnings. Never happen.
Flashback: In declaring her candidacy in her first run for president in 2019, Harris called the wall Trump's "medieval vanity project" that wasn't going to stop transnational gangs from entering the U.S. In February 2020, Harris wrote on Facebook that "Trump's border wall is a complete waste of taxpayer money and won't make us any safer." In April 2017, soon after joining the Senate, Harris said the wall was a "stupid use of money. I will block any funding for it." https://www.axios.com/2024/08/27/kamala-harris-flip-flops-border-wall
There are lots of tax plans out there that do this and offset that issue with a “prebate”. Look up fair tax for some details.
You would think the same people who think it's "not fair" for others to have student loan forgiven when they paid off their debts would also think it's not fair for others to work OT tax-free when they had to pay tax in their careers when they worked OT. Let's just do the flat/fair tax already and eliminate this complicated disaster of a tax code.
So what are the details? It’s just another slogan that means nothing until then. Already a hundo questions here. I might like it. I suspect it was just something T blurted out with zero substance behind it.
Non-zero chance a member at Mar-a-Lago suggested it and Trump's team heard it for the first time when everyone else did.
Probably. It isn’t a new concept (and I also notice “concept” has entered T’s 20 word vocab) but usually there are details that reveal the stank. This one was just a lonely blurt. “Tax-free OT!!” “How does it work?” “Tax-free, that’s how!”
Clownish desperation move, attempting to buy votes. How is Trump going to make up the lost government revenue? BTW, this is a perfect example of the wasteful spending and handouts that caused Trump to blow through $3 trillion in deficit spending, jacking up the federal debt BEFORE Covid even hit. If Harris wanted to trump Trump, she could easily offer to raise minimum wage, which would benefit several times more people than overtime pay. If she gets the working poor vote, forget it. It's game over.
So, I’ve seen where this proposal has been characterized as bad since it disadvantages salaried employees. What does that mean ….. at what disadvantage does this proposal place the salaried worker, especially the salaried employee that works remotely from home?