No taxes on OT!!!! To good to be true!

[sapper83]

Because your employer matches those taxes through their payroll taxes.

Exactly i was wondering if they are non taxable do we still pay social security and Medicare tax on OT? Then the employers will have to match that still. So it essentially isn't tax free. And even if it is federally tax exempt that doesn't mean the state can't tax OT.

 

[sapper83]

I get two different "income" boxes on my W-2. One shows the actual amount I earned for income purposes, the other shows how much total income and benefits I got for social security/medicare purposes. It seems to be just an accounting thing and not additional tax.

Thats because all income is subject to social security and medicare tax. Till you hit the max atleast on ss.

 

[Ingomike]

The Laffer Curve, which was used to support "trickle down" economics was his biggest affront to the American middle class.

This is 100% wrong. It lead to sustained middle class that fed into the 90’s. It sure as hell doesn’t trickle up. To create jobs there needs to be incentives to invest the work and or money to create good jobs and productivity. That is why I support no corporate taxes, 0, zilch. It is double taxation. I would also lower capital gains to 10%.

If that was done it would drive capital and boom in the US at unprecedented rates. My only fear is it might just work so good that it could cause war.

 

[foszoe]

Exactly i was wondering if they are non taxable do we still pay social security and Medicare tax on OT? Then the employers will have to match that still. So it essentially isn't tax free. And even if it is federally tax exempt that doesn't mean the state can't tax OT.

You pay SS up to like $168,000/yr. I think Medicare goes on forever.

 

[NoAdmiration]

I will concede that if the law is changed removing tax obligations from overtime pay, it is not a benefit by the strict letter of the law. But the law itself is then inequitable. To me the benefit is someone earning say $100,000 including overtime will pay less in taxes than someone making the same amount with a 40 hour work week.

As implied above (post #16?), if it is a benefit to reduce taxes on OT, why not for all? Why should folks who have the opportunity to vastly increase their pay for additional labor deserve this special carve out?

Let's not let the perfect be the enemy of the good. Your point is valid but the current progressive tax system is inherently inequitable. It is also deliberately complex for the benefit for the tax preparation industry. They have good lobbyists.

A fair system would be a flat tax.

I would prefer an entirely voluntary "Go Fund Me," type system. Pay what you want to get the things you want. If enough people agree, you get it. Yes. this would advantage the rich who can pay much more, but this would still be an ethical system in that no one is forced to pay for things they don't want or disagree with. Yes, there will be free ridders, but that's a small price to pay for a system that doesn't use the threat of force to compel people. If my neighbor chooses not to pay for the fire department, then I don't have too invite them to the BBQ. It will also create an incentive for a lean government that doesn't waste money it doesn't actually have.

 

[Tradesylver]

Wonder how that works for retired folks? Better still no income taxes on social security. Wasn't there a time when that was true? I think old bite me Biden pushed to tax ss payments. I could be wrong.

 

[sapper83]

You pay SS up to like $168,000/yr. I think Medicare goes on forever.

Yup 168,600 to be exact lol i maxed out a few months ago.

 

[sapper83]

Wonder how that works for retired folks? Better still no income taxes on social security. Wasn't there a time when that was true? I think old bite me Biden pushed to tax ss payments. I could be wrong.

Wtf you paid taxes on wages to earn it and now pay taxes again????

 

[NoAdmiration]

Wonder how that works for retired folks? Better still no income taxes on social security. Wasn't there a time when that was true? I think old bite me Biden pushed to tax ss payments. I could be wrong.

In 2005, Bush Jr. tried to tie social security to the stock market. He was lambasted for "Privatizing," social security. If we had made that choice, the system would be solvent. Social security is a Ponzi scheme and that has been known since it inception as a benefit for war widows. The retired community is stealing money because money was stolen form them. With sincere respect, I sympathize, but when do we decide to stop stealing from the future to pay for the past? There is no lock box, the money is gone. This is where "thou shalt not steal," becomes much bigger conundrum. Obviously some kind of phase out would be necessary based on what was contributed with an appropriate adjustments for inflation and a reasonable interest rate. But there simply are not enough grandchildren to continue the system as is.

 

[Ingomike]

But there simply are not enough grandchildren to continue the system as is.

The Haitians will save us!

 

[Ingomike]

In 2005, Bush Jr. tried to tie social security to the stock market. He was lambasted for "Privatizing," social security. If we had made that choice, the system would be solvent. Social security is a Ponzi scheme and that has been known since it inception as a benefit for war widows. The retired community is stealing money because money was stolen form them. With sincere respect, I sympathize, but when do we decide to stop stealing from the future to pay for the past? There is no lock box, the money is gone. This is where "thou shalt not steal," becomes much bigger conundrum. Obviously some kind of phase out would be necessary based on what contributed with an appropriate adjustments for inflation and a reasonable interest rate. But there simply are not enough grandchildren to continue the system as is.

Fine, phase it out, but if the promise the US government made to its people, that paid in their whole lives, is broken get ready because hell will be coming to breakfast…

 

[DoggyDaddy]

Fine, phase it out, but if the promise the US government made to its people, that paid in their whole lives, is broken get ready because hell will be coming to breakfast…

Could we make it dinner? Because I don't eat dinner. Breakfast is my main meal and then lunch and a nap. I'll be more prepared for hell at the typical dinner time. Which at my age would be around 4 p.m. if I ate dinner. Would that work for hell?

 

[NoAdmiration]

Fine, phase it out, but if the promise the US government made to its people, that paid in their whole lives, is broken get ready because hell will be coming to breakfast…

It wasn't a promise, it was a lie. Anyone familiar with economics should have known it from the start. It was a lie everyone was forced into. At some point the math will assert itself. Everyone is just hoping they will die before the bill comes due.

 

[miguel]

Would Congress have to approve this change? Or is it "administrative" in nature?

 

[NoAdmiration]

The Haitians will save us!

I hear they have great cuisine, just don't ask too many questions.

 

[Ingomike]

Could we make it dinner? Because I don't eat dinner. Breakfast is my main meal and then lunch and a nap. I'll be more prepared for hell at the typical dinner time. Which at my age would be around 4 p.m. if I ate dinner. Would that work for hell?

 

[DoggyDaddy]

Would Congress have to approve this change? Or is it "administrative" in nature?

Should require Congress, but who TF knows these days? EO's get thrown out there even knowing that the courts will strike them down. They just don't care.

 

[DoggyDaddy]

I hear they have great cuisine, just don't ask too many questions.

And easy divorces too maybe?

 

[Ingomike]

They just don't care.

The people don’t care…

 

[DoggyDaddy]

The people don’t care…

I think the people do care. That's how the courts get involved. But the issuer of the EO's is still throwing up a big middle finger to the people and the Constitution. But they keep doing it because it takes time for everything to work through the courts before the eventual (if we're lucky) judicial smackdown.