I've always been of two minds. When it's to effectively pay workers cash under the table that isn't taxed? Great. We should do that more with everything. Tip your waiter, tip your barber, tip your plumber.
When it's obligatory? Fuck off. I'll tip when I feel like it, when I get great service.
Especially if you go to see them regularly and they know you. It's nice to slide a few bucks to somebody you'll only see once every few months. But for the imported foreign labor of today? No way.
When it's to effectively pay workers cash under the table that isn't taxed?
They just changed it so that tips are not taxed. Same for overtime. Now, I don't have an opinion on taxing tips, but not taxing overtime seems insane to me. Surely, you don't want to encourage overtime even more than it already is in the US?
I don't think the company cares if your overtime is taxed or not. They pay the same amount either way. Now, though, the worker putting that time in is basically getting a raise. What's the problem with that?
Well, it's a worker protection law in the US. If you work more than 40 hours in a week, you must get paid 150% of your normal rate for each extra hour. In many cases, the company is loathe to pay OT, and thus keeps workers to 40 hours or less. Some companies decide that the OT is worth it, and many guys (especially blue collar types) love to collect a bunch of premium pay every week. This system gives the company incentive to shy away from saying, "oh, we need a shift covered? Meh, just make Joe pick up a sixth day every week. Yay, problem solved!"
If you're trying to say income shouldn't be taxed at all, I agree with you. This is a good step, though.
Most of the workers who do overtime love the extra money because they get paid time and a half. Not getting taxed on that makes it even better for them. While I wouldnt want to work that much, most people who actually do, or need to, love that change.
Surely, you don't want to encourage overtime even more than it already is in the US?
Some of us work overtime willingly to be able to provide more for our families or our hobbies and would kill to be allowed to willingly work more of it without taxes. In fact, it would make me work less of it to get the money I was seeking.
I've always been of two minds. When it's to effectively pay workers cash under the table that isn't taxed? Great. We should do that more with everything. Tip your waiter, tip your barber, tip your plumber.
When it's obligatory? Fuck off. I'll tip when I feel like it, when I get great service.
Especially if you go to see them regularly and they know you. It's nice to slide a few bucks to somebody you'll only see once every few months. But for the imported foreign labor of today? No way.
They just changed it so that tips are not taxed. Same for overtime. Now, I don't have an opinion on taxing tips, but not taxing overtime seems insane to me. Surely, you don't want to encourage overtime even more than it already is in the US?
Perhaps the aim was to reduce under-the-table arrangements.
I don't think the company cares if your overtime is taxed or not. They pay the same amount either way. Now, though, the worker putting that time in is basically getting a raise. What's the problem with that?
Right, but why should workers be incentivized to do overtime like this? What's special about overtime?
Well, it's a worker protection law in the US. If you work more than 40 hours in a week, you must get paid 150% of your normal rate for each extra hour. In many cases, the company is loathe to pay OT, and thus keeps workers to 40 hours or less. Some companies decide that the OT is worth it, and many guys (especially blue collar types) love to collect a bunch of premium pay every week. This system gives the company incentive to shy away from saying, "oh, we need a shift covered? Meh, just make Joe pick up a sixth day every week. Yay, problem solved!"
If you're trying to say income shouldn't be taxed at all, I agree with you. This is a good step, though.
Most of the workers who do overtime love the extra money because they get paid time and a half. Not getting taxed on that makes it even better for them. While I wouldnt want to work that much, most people who actually do, or need to, love that change.
Some of us work overtime willingly to be able to provide more for our families or our hobbies and would kill to be allowed to willingly work more of it without taxes. In fact, it would make me work less of it to get the money I was seeking.
I like to do it. Anytime I get my haircut I pay with a card and tip in cash.