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.
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
Really? I thought overtime need not be paid out at all. If this is true, your laws are actually better than the European laws I know, where it depends on your contract and sometimes need not be paid out at all (although basically no one actually does it).
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!"
I don't quite get this. Doesn't this incentivize getting people to work more? Or do you mean forcing a random bastard to do it, who doesn't want to do it, beause they find willing people?
If you're trying to say income shouldn't be taxed at all, I agree with you.
It's not realistic. That is what annoys me about the "taxation is theft" lolbertarians. If they spend it on collective goods for ME, then it is not theft. If they send it to Ukraine or bring in fake refugees to kill me, then it is.
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.
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.
Really? I thought overtime need not be paid out at all. If this is true, your laws are actually better than the European laws I know, where it depends on your contract and sometimes need not be paid out at all (although basically no one actually does it).
I don't quite get this. Doesn't this incentivize getting people to work more? Or do you mean forcing a random bastard to do it, who doesn't want to do it, beause they find willing people?
It's not realistic. That is what annoys me about the "taxation is theft" lolbertarians. If they spend it on collective goods for ME, then it is not theft. If they send it to Ukraine or bring in fake refugees to kill me, then it is.
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.