President Trump wants to end taxes on overtime wages. Thoughts?

[exitseven]

I am not sure how this can be implemented and I think that maybe this is not a good idea. Ending taxes on tips makes a lot of sense because it helps people at the bottom of the economy and it will cost the government thousands of dollars to hire IRS agents to chase after a waiter in Brooklyn for a couple of hundred bucks. Ending taxes on overtime is not really taxing everyone the same. Sorry President Trump but I think you might want to think about this.

Updates

1 y

Our colleague @OlderAndWiser made a compelling argument about this and I decided it is a good idea after all.

[RingOfFire]

Have to disagree strongly with you on this one.

Tax cuts that just redistribute income are not good. That's welfare and it should be handled by straight payments rather than being introduced into the tax code. By handling it as welfare payments instead of tax credits, particularly refundable tax credits, you make it transparent and voters can decide whether or not they want to pay taxes to go to other people who are not contributing to the economy. By burying these things in the tax code that no one understands it hides welfare payments.

But cutting taxes on overtime isn't a redistribution of income. It's an incentive for people to work harder. That is an excellent stimulus for growth in the economy which is what president Trump's economic plan is all about.

In particular since the United States has one of the most progressive tax systems in the world, including more progressive than some socialist European countries, there is little incentive to work overtime because that pay is taxed at a marginal rate that is higher than the standard tax bracket of the worker. This would eliminate that concern and be a boon to the economy.

Tax incentives that stimulate growth are exactly what is needed after 4 years of killing growth with the Harris Biden economic income redistribution policies.

[RingOfFire]

Also want to add that he's proposing eliminating tax on Social Security. This is something that is long overdue and is completely unfair to those who contributed to the Social Security system their entire career only to have it taken away through taxes when they receive the payments.

[RingOfFire]

This is my area of expertise so it seems very clear to me.

The bottom line is that President Trump's strategy is to get the country out of this debt problem by growing the economy. Think of it this way.

If you owe too much money and you're having difficulty making the payments, there are two ways you can deal with it. Either figure out how to reduce the debt somehow, which may be impossible, we'll figure out how to earn more money so that the debt won't seem like a burden anymore.

President Trump's strategy is to grow the economy so much that the debt will pale in comparison. Even if the debt isn't reduced, and even if it is increased, as long as you can grow the economy even more the problem diminishes.

In my view this is the only strategy that is going to save the country from bankruptcy and we need to embark on it immediately.

And I think President Trump has exactly the right plan. Tax incentives are part of that plan but there's a lot more to it. Regulation cuts and taking the government Jack boot off the neck of corporations particularly in the energy sector is the key to making America great again.

[RingOfFire]

Because tax cuts give people and businesses incentive to work harder and grow, every tax cut in the last 50 years has resulted in more taxes collected by the government instead of less. It's counter-intuitive and a lot of people don't understand that. When you cut taxes, more jobs are created so there are more people paying taxes, and people work harder, taxes collected are actually higher than before the tax cuts. We are on the part of the curve that makes that true every time.

We need tax cuts, regulation cuts, secure borders so we're not wasting money, no foreign wars so we're not wasting money, decreased crime so we're not wasting money, and drill baby drill!

That's the recipe for American success.

[RingOfFire]

The only weakness in the Trump campaign is that they are not articulating these points well. They need to be explained over and over again to the public so that they get it.

[exitseven]

Very good point

[RingOfFire]

They have the right formula. They're just not communicating it well.

[FunkyMonkee]

I think he should end taxes on ALL income!! We're already being taxed to the poorhouse for everything else! Why do we have to pay taxes on what we earn? We pay taxes for what we buy, on the land we live on, on the schools we don't even have kids going to, on things we want to acquire, services we need rendered, taxes to the IRS where there isn't even any kind of law that says we HAVE to pay them, (it SUPPOSED to be done VOLUNTARILY!!). If we could KEEP what we earn, we wouldn't bitch so much about the other taxes.

[exitseven]

If we didn't pay taxes how could we afford 20 million 3rd world loafers? They expect the best.

[FunkyMonkee]

Fuck `em!! Let `em come in LEGALLY and then get a fucking job like the rest of us are expected to! Maybe, if they find out there's no free ride here, they'll stop coming and get word to the rest of the planet about it.

[CrazyGirl2]

It’s a great Idea! That would immediately pump a lot of much needed money back into the economy. Combine that with the reopening of the oil leases and pipelines the Biden-Harris administration closed, and the prices of everything will start to go own, because everything needs to be driven to the stores by diesel trucks. A LOT is going to be needed to reduce inflation, but those are certainly two really good starts.

Laura 🤗 🥰

[purplepoppy]

I don't know anything about the American tax system but I think it would work well here in the UK where tax is calculated for you and deducted automatically. As someone on the left I feel that little extra cash could go along way to help the low paid and encourage them to seek over time without worrying the taxmans going to grab it and it would raise them off the breadline. It's nice of Trump to consider a socialist idea.

[OlderAndWiser]

The affluent, if employed at all, are all exempt employees who receive no overtime because they don’t punch a clock. I think this would help blue collar and middle class families.

[Telekinetic-Potato]

Anyone who's relied on overtime knows that this would be a major help for many of the hardest working people.

It is absolutely criminal that the government here gets to rape people for working overtime. They get taxed extra.

When you're making $800 a week and your overtime pays an extra $400 you only receive a fraction of that $400.

It's just another way for the government to steal from businesses and poor people.

Watch, they're gonna start handing out overtime like hotcakes of they really do that. It shiuld make handing out overtime to people more affordable than hiring extra people at a lower pay.

I remember those days and it still pisses me off just thinking about it.

[strateguy632]

https://www.irs.gov/filing/federal-income-tax-rates-and-brackets

In u. s. this is extremely important to change. If working overtime moved them to richer, " they pay a higher percent on the extra " and lose motivation and pay they earned!

But no tax on overtime has the opposite benefits! From trump the one who understands economics!

My opinion is the opposite from I. R. S. someone earning 500,000 who gave just 5% is giving 25,000 that is PLENTY more than my tex 3,400 8 times more! Is enough tax.

Not unfair 35% tax.

[AviatorTom]

The idea is potentially a good one in that it would keep people from going into higher tax brackets just because they are working overtime. It's a bad idea in that would also reduce people's Social Security and Medicare contributions, which would put further strain on those systems.

So, overall, it's not the best idea, but maybe a different way of taxing overtime wages might be good.

[morganherrel]

mmm it depends on your outlook on work and the economy.

It creates opportunities for people to boost their incomes in ways that are both in their control and entirely earned (without any redistribution).

I think the Republican ethos is to see virtue in work and enjoy incentives for more work, so they probably love this idea.

It also can have a "supply side" effect that combats inflation, similar to what happened in the 1980s.

[sage2021]

Well it would only be for hourly worker's because everyone else is paid a salary and they don't get paid for overtime.
If a company was against this, they would probably make everyone a salaried employee.

[sage2021]

But like they say "The more you make, the more they take"!!

[Kelly6]

@sage2021
Its way better then government throwing them money and then crying about federal debt.
If you work hard overtime, you get more

[ManInChains]

Love it! It's good that he came up with another thing like no tax on tips which is something Harris stole from him in order to look good. If she steals this one too people will start to figure it out

[Finchie40]

I think it’s a great idea especially after seeing how much taxes our taken out after you work overtime People would keep their jobs and won’t bitch about overtime so much because they know they are being compensated for it , so I think it’s a great thing to be honest with you

[msc545]

Some other tax will need to replace it. Have to keep subsidies going to military contractors.

[exitseven]

yes, I think that is right. When people are making time and a half they should be taxed. I usuallt agree with president Trump but the next time we talk I plan on telling him that maybe he should rethink this.

[Fireguy17]

I'm fine with that.
it helps out those who actually bust their asses and work hard.

[Anonymous]

Kamala Harris would never have come up with this idea

[supercutebutt]

Donald Trump is a fat clown. 🤡

KAMALA 2024!

[exitseven]

Trump at least has lost weight. Harris cannot do anything about stupidness.

[supercutebutt]

If Kamala is so stupid, why does the Wharton School prefer her plan to Fatty's? LOL!

Checkmate :)

[exitseven]

That is a lie the media cooked up. Besides Harris has no plan except to do some of the stuff Trump already talked about

[supercutebutt]

HARRIS: “What the Wharton School has said is Donald Trump’s plan would actually explode the deficit.”

THE TRUTH: The Penn-Wharton Budget Model did find that Trump’s tax and spending plans would significantly expand the deficit by $5.8 trillion over ten years. But it also found that Harris’ plans would increase the deficit by $1.2 trillion over the same period.

[exitseven]

WHAT PLAN, SHE HAS NO PLAN.

[supercutebutt]

She obviously has a plan if economists are commenting on it, my doof.

[noohair]

Hourly workers are also on the bottom. As you rise up you have a salary.

[Pterodon]

It’s about time. I was once a big overtime dependent person. A common saying for time and a half earners is regarding pay “I get the time and the government gets the half.”

[strateguy632]

It sure feels that way! Trump made another altruistic move!

[OddBeMe]

Funny when he’s in trouble he goes for liberal causes like tax cuts for poor people and abortion rights.

[exitseven]

Trumps tax cut helped the middle class more than any other group. My federal tax decreased by 4k.

[OddBeMe]

BS. Prove me wrong

[andreasderjuengere]

I'm thoughtsing that he plans to do a LOT! of overtime once this plan has been smuggled in.

[DrPepper12]

Ending taxes on tips is window dressing for wages from
$2 13 to actual wages of $22 plus tips.

[beefcakebradybatson]

To paraphrase the Castaways' 1965 hit,"Liar, liar, pants on fire, Trump's nose is longer than a telephone wire !!!"

[gatixek710]

Works for me. But don’t stop there

[Jamie05rhs]

I agree with you.

[Jamie05rhs]

I don't think we should, as a society, be promoting overtime as something to strive for. I think that overtime should be the exception (for when companies really need those extra hours).

[Hispanic-Cool-Guy]

Good idea.