These 2 ideas – No income tax on overtime pay and tips earned by workers – was proposed by Trump. These 2 ideas will ease the tax burden of workers and put more money in the pockets of those working long hours.
This will also encourage employees to work more hours and thus help the employers with extended labor force.
Of course, there are people who oppose these ideas. I think they are silly arguments.
These 2 policies will favor those who are able to work extra hours. But not favor those unable to work overtime, like working parents who are unable to work overtime, etc. These people continue to work their regular hours whereas workers who can do overtime would enjoy tax-free earnings with their extra hours of pay.
I think this is communism. What is the problem if you are able to work overtime and get extra money? My thinking is if they are unable to work overtime now, then these 2 policies will have no change in their lives.
Another argument is this will help working in the services sector. People working in the salaried position who may work long hours will see no benefit. This is happening today that they don’t get overtime pay now. So there is no change in their lives. If you want to work overtime and get tax free pay, then go and find such a job.
I consider these are weak arguments. If I am in a position that pays me tax-free overtime pay and able to buy BMW and you are not in a position to work overtime or in a salaried position and able to buy a Toyota only, that is life.
To quote late President John F. Kennedy – There is always inequality in life. Life is unfair.
Generally overtime wages which are double the normal wages are paid to wage earners who are paid for hours they work. It is perfectly in order to give tax benefits on the extra wages for longer hours worked. There is no case for complaint by others.
ReplyDeleteThanks for your comments Mr. KP. Hope Kamala Harris supporters read your comment.
DeletePeople who work overtime don't realize how their health is being affected. I feel, this should be discouraged by increasing taxes.
ReplyDeleteThanks for your comments Rajesh. HaHaHa funny comment.
DeleteIn the employment contract itself HR define our job/position under exempt category therefore not eligible for overtime or can't even take a compensatory off.
ReplyDeleteThanks for your comments Anonymous. At least, give me your name once, please. I agree with you. They read the employment contract and signed. So should have no complaint.
DeleteI spent so much money to leave my country to stay here and make some money with hard work. Currently taxes are killing me. Because of that several occasion, I need to avoid overtime (if my company doesn't allow compensatory time off). I whole heartedly welcome this proposition for no tax (federal, state, social security tax and other local taxes) on overtime pay. This will be a dream comes true not only for me but also for the entire work force in America.
ReplyDeleteThanks for your comments seema,
DeleteThis idea will definitely help people those who are in desperate need of extra income but at the same time it will make the greedy people to spend more time for work instead of spending it with family. I feel, though money plays a vital role in life, money is not everything
ReplyDeleteThere is some merit in both sides of the argument.
ReplyDeleteHaving said that the proposal does have an inbuilit element of inequity in it, a lack of fairness.
Incentivising hardwork and one's proactive nature is always good. But the offer of incentive should be on a level playing field.
Ideally, a good employer houldn't have to resort to such tactics to get the work done.