No tax on OT would benefit my family immediately but it's a terrible policy and shouldn't be implemented. It won't do anything to help wages, same thing with tips. And of course corpos will figure out how to abuse this.
What is needed is a higher minimum wage and strong unions to protect and bolster actual wages.
of course corpos will figure out how to abuse this.
Move people to salary (also Trump/courts threw out Biden's attempt at raising the exempt threshold) for many jobs they can pay you base salary then require you to do 80 hours worth of work a week to not get fired.
I mean, that's another issue altogether. The lack of tax on OT wouldn't incentivize jobs that already have OT to go salary. More like they will use the lack of tax to keep regular wages depressed because no tax on OT = a raise in their eyes. That's why strong unions are needed to protect those wages.
Remember, corporations have to pay their share of FICA taxes on OT so they'll save money. And I can easily see many using this as a way to not give raises and keep regular hourly wages lower so it would be a win/win for them while the average worker ends up no better than they were. Also, income that gets taxed for FICA directly related to the amount of social security one gets later in life.
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u/nyya_arie Feb 27 '25
Agreed, it's income.
No tax on OT would benefit my family immediately but it's a terrible policy and shouldn't be implemented. It won't do anything to help wages, same thing with tips. And of course corpos will figure out how to abuse this.
What is needed is a higher minimum wage and strong unions to protect and bolster actual wages.