Any Economic Majors, MBAs or Accountants? Why Wouldnt This Work or Would it?

[Billy Slowhands]

I'm no economist, just a hard working American as many of you. But I've been milling this idea around in my head ever since I've noticed that the middle class in NY has all but disappeared.

My question is why cant the government tax anything after 40 hours at a much lower rate? The idea is that you pay your fair share of taxes at a normal rate based on your BASE salary. After that your rate of taxation could decrease after 40 hours so that working overtime would actually be worth it.

Imagine if you were able to bring 80-90% of your overtime home instead of 50% or less. At 20/hr , 28 hours of OT would gross $842. Taking home $757.8 at 90% or even $673 at 80% is a hell of a lot better than netting $420 at 50%! In fact to make it simple why cant the government allow separate checks for overtime? This would decrease the tax rate. For some reason its illegal though.

This money would be poured right back into the economy too. The poor can actually work more to pay for their food instead of the government whining about welfare. With an increase in the minimum wage, the middle class would surely return due to reaping the benefits of working harder. Its not like you aren't paying your share of taxes on your 40 hours. Why wouldn't it work?

 

[Billy Slowhands]

this helps us all come up

 

[Disanddat]

I'm no economist, just a hard working American as many of you. But I've been milling this idea around in my head ever since I've noticed that the middle class in NY has all but disappeared.

My question is why cant the government tax anything after 40 hours at a much lower rate? The idea is that you pay your fair share of taxes at a normal rate based on your BASE salary. After that your rate of taxation could decrease after 40 hours so that working overtime would actually be worth it.

Imagine if you were able to bring 80-90% of your overtime home instead of 50% or less. At 20/hr , 28 hours of OT would gross $842. Taking home $757.8 at 90% or even $673 at 80% is a hell of a lot better than netting $420 at 50%! In fact to make it simple why cant the government allow separate checks for overtime? This would decrease the tax rate. For some reason its illegal though.

This money would be poured right back into the economy too. The poor can actually work more to pay for their food instead of the government whining about welfare. With an increase in the minimum wage, the middle class would surely return due to reaping the benefits of working harder. Its not like you aren't paying your share of taxes on your 40 hours. Why wouldn't it work?

I wish I knew the current tax rates or even how it is done in real life. I know that you cannot simply allow people to have more money and then everything will be ok (because of inflation).

It is shocking to me that taxes for any part of ones paycheck is 50% in total, crazy. (did not know until this thread). Nothing wrong with your idea , typical points presented in favor of lower taxes.

 

[gene cisco]

Actually read somewhere that 75% of your money goes to taxes. Dmv,sales,property,state,regional,fed and other gov fees.

Its all a hustle. Hell yeah it would work, but the governement doesn't care what works for you.

Think about it, a generation ago one income was good enough for middleclass, now two barely is.

75% of your money gone, and then the greedy fucks act like you should be happy with your facial........er I mean refund when you file.

The more you work the more you earn, they even want money when your money works for you. Why you think rich folks go offshore or get safes?

Maybe you should look offshore with that OT money, just don't use the debit card cause they track it in a lot of places.

Its not unamerican to want more than 75% of yo money when all the governement does is waste it 1000 dollar a plate dinners, foreign aid over domestic.

Good luck.

 

[Mickey Spillane]

Not knowing the tax rate and how the government strips our overtime; I have to say, I know it would me a lot if I got a separate check for OT. Some weeks I would gross about 600 in OT and come home with barely 400 of that.

2 things happen when you see how the gubment rapes your check. You flat out bawl from the pressure and helplessness or you say fuck it and work like 6 or 7 hours max OT.

 

[NuffRespeck]

Your suggestion has some merit and should be brought to the attention of your Congressman, Senator and state elected officials. Most important get your associates to begin a write-in campaign to those officials asking for their support.

 

[neo_cacos]

WELL...payroll tax is a bitch. The goverment typically will use a big ass table with all kind of income range with your specific situation to estimate how much $ should be deducted from your paycheck. This table is usually kept in the payroll system of your company.
When you work overtime, all that happens is that you move from one range to another (higher one), with a progressive tax system, the overtime $ will be hit by a higher deduction.

If you pay attention, usually, pass 10 or 12 hrs of overtime (depending on how much you're making), almost all the extra cash goes to uncle sam. therefore, at some point it is just not worthed ...unless you really need the cash.

NOTE: This info is base on the canadian tax system, I'm not very familiar with the US one yet, but it should be quite similar.

THERE'S ONLY TWO CERTAINTIES IN LIFE...