(no subject)

[bzarcher]

Grr..

Federal tax law regarding "bonuses" continues to piss me off. What's the point of a bonus if over half of it just gets handed to taxes?

Comments

[flying-landon.livejournal.com]

Govmentz in ur wallet, taxing ur bonusz.

[bzarcher.livejournal.com]

OMG. Hax.

[flying-landon.livejournal.com]

lawl!

[flaggerx.livejournal.com]

Would you rather not get the bonus? And how much of that bonus do you get back at the year's end.

Personally, I'm a big fan of the income tax. It's cheap and efficient to collect, and one of the few taxes that don't sock poor people harder than rich people. I'll pay the tax. After all, someone just gave me more money. I can afford it.

[bzarcher.livejournal.com]

No, I'm glad to get it, but why should a bonus be taxed at a significantly higher rate than standard income? It doesn't hurt poor any more than rich, but I'd prefer it be treated differently.

(Of course, I grew up in a house where it seems like I heard almost every day about how we should have a flat income tax for anyone above a certain minimum income level, so...)

[flaggerx.livejournal.com]

Actually, it isn't taxed at a higher rate. What happens is that the way your employer calculates deductions assumes that your weekly salary and your bonus together are your normal weekly salary. In other words, that you make some multiple of your actual income.

The good part about that is that when April 15 comes around you get to correct that, and get a lot of that overpayment back.