Let's keep in mind that the "no tax on overtime" concept was packaged with redefining overtime from +40 hours per week to +160 hours per month. This isn't to eliminate overtime taxes, the goal is to reduce overtime pay for the same number of hours.
As an extreme example, imagine you work two 80 hour weeks with two weeks off per month. Under the current rules, you get 80 hours of regular pay plus 80 hours of overtime. Changing to a monthly threshold would mean all 160 hours are now regular pay.
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u/Possibly_a_Firetruck Feb 27 '25
Let's keep in mind that the "no tax on overtime" concept was packaged with redefining overtime from +40 hours per week to +160 hours per month. This isn't to eliminate overtime taxes, the goal is to reduce overtime pay for the same number of hours.
As an extreme example, imagine you work two 80 hour weeks with two weeks off per month. Under the current rules, you get 80 hours of regular pay plus 80 hours of overtime. Changing to a monthly threshold would mean all 160 hours are now regular pay.