For many decades the US economy has been hamstrung by the fact that it just doesn’t pay to invest capital here.
The capital-intensive enterprises that built this country (cars, steel etc.) have flown away to countries where capital stock gets better returns.
The industries that remain are
industries where all the company needs to buy is some office space and a computer
industries like retail and restaurants where the company cannot avoid begrudgingly buying stuff and using it here.
That we have lost our edge . . . the entire relative decline of the US compared to the ROW is because of this and the decline is much more sever than it appears, but util now we have been able to mask it by artificially making capital cheaper-and-cheaper rather than more-and-more productive, but the well has run dry.
I can work OT every day of the week, and double shifts on the weekends. I refuse all of it. My free time is worth more to me than time and a half. If you’re not going to tax it, that changes everything.
I have one question. When time comes to do your taxes, we wouldn’t include income from OT? Or would we just have to pay it back when we file?
Nothing about “no tax on overtime” changes whether overtime at any given job is voluntary s mandatory.
What is to does is make such that if you give an extra effort, work harder,
then 100% of the fruits of that labor go to you and your family. Not one damn dime of it is used to take care of others, educate someone else’s kid or provide for common good such as roads and bridges. You share out of that pool, but this pool you get to keep for you and your family.
You have no idea what I was fed …you simply cannot admit you have been duped by influencers who take advantage of gullible conspiracy believers…your hatred for the US Government has tainted your ability to understand reality, to the point you will beleive anything, but the truth.
So for the more informed posters on economics such as @Gaius and @Safiel obviously reducing the working joes taxes is not a bad thing. Who doesnt want to pay less tax but if we are reducing tax receipts to the federal government should that not a reduction in spending also be part of the equation.
I know when it comes to taxes and spending republicans and democrats are as bad as each other so this question is not about dems good republicans bad but a purely economic question.
It would be calculated on a different block in the W-2 and be non-taxable and not added into AGI. I have a feeling however it would be added back in when calculating credits.
So you won’t be taxed on it, or have to pay it back. But it would be counted as “income” when calculating child tax credits and the EIC. Pretty sure thats the plan, and also pretty sure it will work the same for tips.
fed income tax is withholding. if however the poster meant withholding, then it would have to be, which is a faily simple thing as most payrolls itemize overtime pay on a serparate line
spending has to be gotten under control. I’m a radical on this and support a wholesale revision of federal government structure and a plan to return to the states those things that have been usurped from them by the federal government.
yes, my bad. I thought he was talking only about the employee’s paycheck.
I have no idea how it might affect the employer portion. I don’t think it would have any effect on the majority of unemployment insurance taxes as those are mainly state. I don’t think it would affect the SS and medicare portion at all for either the employee or the employer. That however is already calculated at the straight time rate so SS/Med is not paid on OT premiums anyway
I am always surprised that we pass one spending bill after another without saying “Shouldn’t we be opposed to this until we see offsetting spending cuts to pay for it?”
We don’t do that with billion dollar giveaways, and we did not do that when Kamala proposed no tax on tips, or paying off medical debt, etc…
Yes spending should be cut,
but this proposal does not present a nee need to do so in ways that other proposals do not.
I am probably not as radical as you but I do agree we need a complete revision of federal spending as well as government structure. I am not averse to cutting the bloated staffing which I am sure is a lot but not the wholesale eradication of all federal employees which some seem to think is the answer.
It is you who has been duped by the Russian influencers and here you are still doing Putins work for free. Must be your hate for half the voters in the United States has tainted your ability to understand reality and the truth to the point that you will do the bidding of Putin for free.
