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.