[quote=carriew][quote=brien]
Example. My son works for union wages in carton printing plant. He is forced to work overtime of which the majority of this overtime money get sucked up in taxes. He is loathe to be forced to work when the majority of this overtime money is confisgated by the government. Hence, his productivity is reduced, his attitude is negative, and his take home pay is less than it would be if he weren't so heavily taxed upon the "time and half" wages.
Warren Buffet and Bill Gates aside, the average worker in the US resents increased forced withholding when it reaches beyond their regular wages and digs into to their "extra efforts" in productivity known as "overtime". Time and time again, I hear workers say:
"Why should I work overtime when most of the money goes to the government"? I believe they have a valid point.
Quote:
You are wrong in your thinking. follow me for a second if you will. you are taxed a certian rate depending on what you claim on your inital w-2(or whatever it is)in the beginning of the year or employment, you can have it changed at any time.
your hours all of them are taxed at this rate with the final reconcilliation at the end of the year on april 15th!
now if you work so much overtime that you get bumped in tax bracket you will pay a higher tax on all of your earnings. but the rate per check stays the same! they actually dont take out more % wise. really.
if I am mistaken please forgive and correct me but this is my understanding of it.
now back to reading the thread...
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Carrie: You may be correct in the yearly reconcilliation but according to my kids paycheck, when he goes into time and half, they withhold more money because he is earning more money. This is how withholding is set up. The more money one earns where the employer is withholding and reporting the taxes of their workers, the more is withheld for tax liability. This is why it saps the productivity of workers who earn hourly wages. The wage earner see more money go towards the government and this is a dis- incentive for working overtime.