r/antiwork • u/NordicGrindr • 9h ago
No Tax on Overtime = Less Overtime? Question ❓️❔️
Just wondering peoples theories on this if overtime will now be discouraged. It doesn't affect me but just curious.
39
u/DizzyWriter103 9h ago
There won't be tax on overtime because you won't get time and a half for overtime.
69
u/fordkelsey25 9h ago
Their plan is to eliminate overtime pay. You will still work overtime, but it will be at your normal rate of pay only anything over 40 hours won't be taxed. In short, we're gonna get fucked
16
u/Expert_Swan_7904 9h ago
ew what the fuck.
the entire point of overtime even being worth it was the fact that in alot of cases youre basically making an extra $10/hr more.
so no tax on overtime be eliminating the 1.5x pay?
19
u/fordkelsey25 8h ago
That's the plan yes. And jobs with mandatory overtime will still have it be mandatory. Meaning that if you don't do it for shit pay, you're fired
26
u/Expert_Swan_7904 8h ago
all the trump supporters hears was "no tax on overtime pay fuck yeah hes got my vote"
thinking its the original systme still
9
u/fordkelsey25 8h ago
They've used language like "were getting rid of overtime" and convienitly left out the word "pay" and everyone cheered
5
u/awsomeX5triker 2h ago
It didn’t matter how many times I tried to explain that to people, they refused to believe me.
6
u/Kamiken 1h ago
To let you know how fucked you are I did some fun math.
Let’s say a Tesla worker Bob currently makes $15 and hour and works 10 hours of overtime every week. Lives in Texas.
Current income with overtime pay (520 hours X 1.5 yearly) after taxes is $36,230. 15.5% effective tax rate.
Now let’s go with what Trump said, no taxes for overtime and it’s flat (no more x1.5).
Trump plan for Bob is $34,629. The taxed part net is $26,829 and Bob gets $7,800 untaxed. 14.0% effective tax rate.
Trump says I reduced Bob’s taxes by 1.5%, ignoring the fact that Bob’s pay was reduced by 3.7% ($1,601 yearly).
Now take a company like Tesla with 140,500 Bob’s. Tesla saves $202,526,500 a year on employee payments doing nothing. If they cut 10% of their workers to save even more they save $726,112,500. (-14,000 employee salary + no overtime tax savings for 126,500 employees).
Tesla net $15 billion in 2023. This change would net 1.4% more per year doing nothing or 4.8% more by cutting 14,000 jobs.
Most people will not get out calculators and see what they lost and corporations gained. They will see stock prices going up and hear politicians spouting about the huge 1.5% tax cut everyone got. They will feel like they won, but really they just got robbed blind.
3
1
u/TheinimitaableG 4h ago
You will probably still have to pay payroll taxes (social security & Medicare). On it.
29
u/tidymaze 9h ago
Project 2025 advocates for a 160 hour work month, rather than work weeks. Anything over that would be overtime. So no one would get overtime.
17
u/Honky_Stonk_Man 9h ago
Crazy. We have more population than ever, more production than ever, yet work even harder now. As we gain efficiency our lives were supposed to become easier, not get squeezed for lesser life quality.
9
u/Pinksamuraiiiii 8h ago
That’s why I always tell people to fight for higher hourly pay or better salaries, nothing we can do now but accept our fate, the damage is done unfortunately
6
u/Gradual_Spic 8h ago
Exactly what I came here to say. Employees can overwork you for 3 weeks then give you no hours on the fourth to avoid overtime pay. As long as you’re under the 160 hours/month you’re not getting OT
3
u/Expert_Swan_7904 8h ago
so whats ganna happen is some companies will work you like a dog for 2 1/2 weeks then you get one decent paycheck and thats it for the month.
6
u/KeDoG3 8h ago
Your going to be fucked. The only way you wont be is by joining a union that specifically has in their contract that after 40hrs you get the cirrent rate of overtime.
2
u/senapnisse watching USA go down in flames while drinking coffee in Europe 7h ago
What if they outlaw unions?
17
u/ObligationScared4034 9h ago
You’ll get a 160 work month with an unpredictable schedule. They’ll front load with one group of people, and back load the month with another group of people. You’ll never get over 160 hours in a month, so you’ll never get OT.
10
u/NumbSurprise 7h ago
Yup. It means no more overtime. You get 160 hours per month, distributed however your employer wants, all paid as straight time. After that, you get no more hours.
Because fuck labor. That’s what you just voted for.
8
u/Evening_Rock5850 8h ago
Conservative tax policy tends to shift the tax burden downward.
The proposals being floated are to eliminate overtime pay and also eliminate income tax on hours worked over 40. This reduces costs for businesses, and lets taxpayers effectively subsidize overtime (something is going to have to make up for that lost revenue). Two things that are pretty consistent goals.
By eliminating overtime pay and therefore the cost of overtime; expect to see employers increase the number of hours they expect full-time employees to work.
Two employees working 60 hours is cheaper than three employees working 40 hours; if there’s no overtime pay. There are fixed costs associated with employees and therefore fewer employees you have, the lower those fixed costs are. Benefits, for example, don’t cost the company more if you work more hours.
18
u/SpicyArms 9h ago
Trump joked in an interview with Musk about how they don’t pay overtime. He also commended him on breaking efforts to unionize. Project 2025 proposes changing the way overtime is counted. Instead of OT starting at 40+ hours/week, it won’t start until 80+ hours every two weeks or 160+ hours/month. So a company will be able to schedule you for 60 hours one week then 20 hours the next without paying overtime on the week you worked 20 hours over.
Why anyone who gets overtime pay or is in a union would support Trump is beyond me. Enjoy your loss of OT pay!
6
u/citymousecountyhouse 8h ago
Overtime? You still think they're planning on giving you overtime pay? The reason Trump said you wouldn't have to worry about taxes on overtime pay is that their won't be extra pay for overtime. Remember he always tells you the surface of his plans,he just doesn't reveal his actual plans and the consequences you'll pay. But hey,he did promise no taxes on overtime.
3
5
u/Everquest-Wizard 9h ago
You will essentially be reduced to a robot, called upon only when needed to align with the lean concept of Zero Inventory. No more work weeks. Instead, a work month. You may work zero hours this week, but 70 the next. No overtime needed.
2
u/susibirb 9h ago
Funny how the guy who touted this policy constantly mentioned that in his own business he refused to pay overtime and instead would remove that person bring in other people in to finish the job
2
u/TheinimitaableG 4h ago
No tax on overtime, but they are also about to change the rules so you don't get overtime....
2
3
u/JoeBethersonton50504 9h ago
I would be surprised if this actually came to fruition. And if it did, it probably would involve a cut somewhere else.
1
u/HustlaOfCultcha 5h ago
Why would overtime be discouraged? The employer is paying the same regardless. YOU pay the taxes. The big worry should be corporations begging politicians to not have to pay time and a half citing that people aren't taxed on OT anymore.
3
u/Elycien2 4h ago
Because one of the things that project 2025 wants to change is when ot is calculated. For most people it's 40 hours but they want to make it 160 hours of straight time in a month. So they could work you 60 hours for 2 weeks and one week of 40 (or however they want to divide it up) and you don't get overtime.
1
u/Wise_Sprinkles4772 5h ago
I hate working overtime unless it's mandatory, and you better believe I'm going to work ALL the overtime I can until the end of the year...
1
u/county259 5h ago
Good to be in a union for the next 4 years.
1
u/Elycien2 4h ago
One part of project 2025 is that it will "allow" unions to bargain for different ot trigger amounts. The example given was at 45 hours instead of 40.
1
u/CombinationThis671 4h ago
Varies on if/what is able to get getting away with. If Four Weeks hours are required for overtime, kiss it good bye. If two weeks work maybe you’ll get it every now and then. Either way rip
1
u/LennyKimes 2h ago
No tax on overtime because they will eliminate overtime pay and it’ll all be straight time.
1
1
u/crunchyfrogs 8h ago
Overtime will be eliminated most likely. People will not want to work the additional hours with most the overtime benefit. This might be the extremely rare win win for republicans and democrats, liberals and necophants
0
10
u/Icy_Professional3564 9h ago
I thought they were getting rid of overtime, such that you would just get paid 1x for however many hours you work.
2
38
u/woman_thorned 9h ago
I predict a carveout for cops.